AUDNZD Analysis September 2016 (W)

I’m starting to look closely again at the AUDNZD currency pair with a view to going long. Let’s see where things stand with the weekly chart.
 

AUDNZD WEEKLY CHART 

 
Previous analysis has outlined the potential for a 5 point broadening low to form with price now on its way to new lows and the final point 5 low. However, I still rate a good chance that this pattern will be nullified with a higher low only.
 
I have added Fibonacci retracement levels of the move from low to high. The first correction in a new bull trend is often deep and that is certainly the case here with price already below the 76.4% level. The next level is the 88.6% level at $1.0201. I suspect a higher low may form just above that level so this is clearly now one to watch.
 
I have drawn a bullish and bearish Fibonacci Fan. Let’s run through them.
 
The bullish fan shows price recently rejected at resistance from the 61.8% angle and now breaking support from the 76.4% angle. The next area of support is the 88.6% angle which lies just below and that is where I will be looking for a higher low to form.
 
The bearish fan shows price trading down between the 76.4% and 88.6% angles which have provided support and resistance respectively. If I am wrong about a higher low then price is likely headed back to support from the 76.4% angle. If I am right about a higher low then that should occur soon and then price will head back and eventually overcome resistance from the 88.6% angle.
 
The Bollinger Bands show price headed back to the lower band.
 
The RSI looks like it will set up a bullish divergence at the next price low as will the MACD indicator.
 
Summing up, there is the potential for a major higher low to form shortly which would lead to a substantial move higher.
 
 

Subscribe

VOODOO ANALYST

MONTHLY NEWSLETTER
(12 ISSUES)

$20 USD per month

 

VOODOO ANALYST

MONTHLY NEWSLETTER
(3 ISSUES)

$30 USD per month

Disclaimer

All information contained in this website is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors. Put simply, it is JUST MY OPINION.

JoomShaper