AUDNZD Analysis January 2017 (W)
Created on Sunday, 01 January 2017 11:06
Written by Austin Galt
Let’s review the weekly chart of the AUDNZD.
AUDNZD WEEKLY CHART
Previous analysis was looking for a wave C low of a wave 2 low in a new bull trend. This is still the expectation but I now favour that to occur on the next low. This low would be a “three strikes and you’re out” formation with the first two strikes in place.
Price rallied nicely after recent analysis however the move was stopped at resistance and set up a double top denoted by the horizontal line. This is a bearish double top as it is with the trend so therefore we should expect a new low.
The Fibonacci Fan shows the recent high was at resistance from the 88.6% angle but perhaps the next attempt at busting through will be successful. It certainly looks more like testing that angle than going lower and getting back near the 76.4% angle.
The two previous lows have been just below the 76.4% Fibonacci retracement level and perhaps the final low will get down around the 88.6% level at 1.0201.
Both the RSI and MACD indicator look likely to set up a triple bullish divergence on the next low so a good buying opportunity looks on offer.
I still have forgotten about the longer term broadening low formation which would see price go even lower but at this stage I am favouring a new bull trend in play with a major higher low about to form.