AUD/NZD price action again reached a level close to the several high points of mid 2015.In this case, it almost equals the pick of September 2015, where, is a potential double top in formation but without confirmation signal.However that this pair is in a good position for fresh short position with a good acceptable Risk/Reward ratio, though you can wait for best entry point in rallies. This has not taken into account the fundamental considerations. The recent GDP data appears to be a bit more positive in New Zealand than in Australia.
- If it holds today’s downward trend, the first level to watch is 1.1175, very close to the recent lows, where probably this pair will stop to possibly evolve into a range mode.
- The second level to watch is the 38% Fibonacci retracement at 1.1200 or so.
- The third level corresponds to 50% Fibonacci retracement at 1.1000 or so, which corresponds to the maximum seen in January 2016 .
If the market moves in our favor, a first gains withdrawal will be in 1.1200.The rest will be open, hoping for a bit above 1.1000 or whatever market decides.The stop loss should be placed above the today’s maximum and will be moved to the break even soon as possible.