Buy AUD/NZD At Key Support Level
AUD/NZD has traded down into a retest of a key support level, a pivotal line in the market that has acted a support and resistance several times over the last two years and as such presents a strong likelihood of holding once more. From a fundamental perspective AUD shorts have been a much more popular position this year than NZD shorts and so are a better candidate for a short squeeze at these levels. Recently the RBA have tempered their Dovish language an confirmed that they feel comfortable with current levels of AUD whilst the RBNZ still see further easing ahead, supporting a move higher from these levels.
Trading Idea
The H1 chart shows that we have formed a falling wedge into this key support level and are now breaking out to the upside. Look to trade a break beyond the local 1.1032 high or a held retest of the descending TL at 1.0990 with stops below the structure targeting a move back into the highs of this block of consolidation.
Daily Chart
H1 Chart
