AUDNZD Trade Idea

AUDNZD has been in a downtrend since past 2 months. The down move is mainly driven by the recent series of bearish AUD news and RBA cut. Detail [here]. Usually Australia's and New-Zealand's economy go hand in hand and factors effecting Australia's economy will most probably affect New-Zealand economy as well. Since Australia economy is bigger than New-Zealand's, so factors out of former will affect the pair more. 

AUDNZD Daily

On a daily chart, pair has broken below major support area but has bounced from lower support area. Pair might be in for a pullback bat downtrend looks strong. I will be looking to go short at broken support area in hope that previous support will become resistance.

AUDNZD H4

To find good area for short, lets see on H4 chart. Pair is constrained in descending channel. There's one more resistance area if price goes above the channel. 100MA is also coming up. Channel's upper line and upper support can provide good resistance on pullback and that's where I will be looking to go short.



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AUDNZD H4 on 10-OCT-2012

Update on 10-Oct-12: Price has moved up the middle resistance level and is near 100MA on H4. I will wait till price bounces to the upper resistance area and will be looking to open short around 1.2570/80 area. That area also coincides with 38.2fibo retracement.  Downward moves looks strong.