Citi Tech: Short AUDNZD – FXWW Chatroom

We are re-establishing a short AUDNZD position at 1.1222 looking for a move towards 1.09 and potentially 1.07. The stop loss is at 1.1355 and this trade utilizes 15% of capital. 
AUDNZD held the trend line resistance and the 76.4% retracement against the highs and posted a doji pattern off there yesterday (reflecting indecision). A down day today would give a clear evening start pattern (suggesting AUDNZD is turning lower from here). 
Good horizontal support comes in around 1.09 with a breach of that area opening the way towards the 200 day moving average currently at 1.0690 
As a reminder, we took off our prior short AUDNZD positions on August 3 at 1.1096 after the initial positions were established on July 21 at 1.1171 (20% capital) and July 27 at 1.1024 (15% capital) 
It is worth noting that NZDUSD is holding at the prior trend low with positive momentum divergence (down move running out of steam) and shows the possibility of a squeeze here. On the other hand, the post-RBA AUDUSD bounce has had no follow through and the broad CCI Index remains in a downtrend. 
View further posts in the FXWW Chatroom with a free trial.

Leave a Reply

Your email address will not be published. Required fields are marked *