AUDNZD Analysis July 2015 (M)
Created on Sunday, 28 June 2015 02:37
Written by Austin Galt
The AUDNZD hasn’t been covered since last year after the setup we were watching failed. Since then I’ve been happy to let it go about its business but there now looks to be another potential worthwhile setup forming. Let’s briefly check it out using the monthly chart.
AUDNZD MONTHLY CHART
We can see price recently made an all time low at $1.0019 so a smidgeon above par. This looks to be the point 3 low in a 5 point broadening low formation. Price is currently finding resistance from the point 2 high but I expect price to crack higher shortly as it heads to a point 4 high.
The PSAR indicator is back to a bullish bias after price busted the dots on the upside this last month.
The Bollinger Bands show price seemingly headed to the upper band and that is where I favour the point 4 high to be. The upper band is currently around 1.15.
The Stochastic and MACD indicators are both looking bullish suggesting further upside is likely.
I have added Fibonacci retracement levels of the move down from March 2011 high at $1.3789 to recent low. I am looking for price to clip the 38.2% level at $1.1459 before turning back down.
Once price looks to be nearing its expected high we can look in a bit closer using the daily and weekly charts. Until then…