New trading ideas for AUD/NZD
AUD/NZD has bounced aggressively as we recovered five weeks of losses over the past week. The daily chart below shows the pair testing important resistance in the form of the 23.6% Fibonacci level and 100-day moving average at 1.0485/1.0490, as we become overbought in a bear trend.
If you go short here you want to see the pair trade back below the eight-month downward-sloping trendline, which starts on the daily chart above in August. The level of this trendline is about 1.0450/45 so bears will feel more comfortable below 1.0440.
As I write there is a potential double top forming on the 60-minute chart, which helps give us confidence for short positions.
This chart shows short-term support at 1.0440 (23.6% Fibonacci and blue 100-hour moving average). This ties in perfectly with the trendline I mentioned above in the daily chart. So holding below 1.0440 should act as the next sell signal.
The next downside targets are 1.0410 and 1.0390 with the best support on the downside likely to be at 1.0380/70 for any shorts that want quite a quick turn. A break below 1.0355 signals further losses towards 1.0325/15.
Short positions need stops above 1.0515. This should give us enough margin of error. A sustained break above here is an obvious buy signal, with important resistance cleared. This should then act as support targeting 1.0540/45, 1.0590/99 and 1.0610/20 for some profit-taking on long positions.
Technical Analyst & Trader
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