Along with many AUD pairs, AUD/NZD is expected to rise. The wave up might start either today or early next week.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.
This analysis was done on MetaTrader 4.
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Trade Idea Details:
Key support levels: 1.0672, 1.0655
Key resistance levels: 1.0727, 1.0782
On the 4-hour chart we can observe a very strong supply/demand zone for AUD/NZD currency pair. This is the price area near 1.0680, which has been acting as the support as well as resistance multiple times. Currently, it is acting as the support, along with the 200 Exponential Moving Average.
As long as 4h closing price will remain above the recent low at 1.0672, AUD/NZD should be expected to rise towards the 1.0782, which is a potential 90 pip move to the upside. The resistance is confirmed by 88.6% Fibonacci retracement level, applied to the last wave up where the price tested 1.0880 high. The upside target corresponds to the average-price uptrend trendline, which yet again might act as the resistance.
Potential Trade Idea:
The ideal entry point would be when the price is below the 1.0700 psychological level. Alternatively, when/if AUD/NZD will re-test the 200 EMA, which is 1.0680. The upside target could be near 1.0782 with a potential hard stop loss at 1.0655.