As was outlined by Chris last week in his AUD/NZD video the pair could be looking to move higher. It’s shaping up as a head and shoulders bottom with support shown at the 1.254 level by the chart. The AUD/NZD tends to be a “grinding pair” in that large significant moves are rare given the economies are so closely linked together.
In order to trade this pair we would like to see a move above the 1.2650 level which will be a signal to push this pair much higher. If it is to break the 1.2750 level the pair could go much higher, but patients is the order of the day when trading this pair as it tends to move very slowly.
If you look at the longer term monthly charts you will see just how stable this pair has been over a considerable time period, with the pair ranging from between 1.10 and 1.36 since 2006. Over that period the trend has been decidedly upwards off the back of the strength of the Australian mining sector. Currently, we are at the bottom of this long term trend line as shown by the monthly chart below. The current short-term chart formation would indicate a bounce of this long term trend line is possible.
Create a FREE account