Eyes Locked on AUD/NZD Range Resistance

As I mentioned in my Twitter and Facebook update, I plan on staying away from the crazy dollar pairs this week so I’ll be focusing on comdoll crosses for now. In particular, I’m lovin’ this AUD/NZD range setup that Big Pippin shared in today’s Daily Forex Chart Art.

AUD/NZD 4-hour Forex Chart

AUD/NZD 4-hour Forex Chart

 

I think I’m a bit late to the party though as the pair already tested resistance at the 1.0900 mark and turned lower. However, price action is still stalling at the 1.0750 minor psychological support level and a breakdown could confirm that the pair is still headed south. I haven’t set actual short orders yet but I’m considering placing one at the top of the range and another below 1.0750, which appears to be the neckline of that shorter-term head and shoulders chart pattern.

Fundamentally speaking, both the Aussie and Kiwi are looking mighty fine these days but the latter could have an edge since the RBNZ is on a rate-hiking spree. The RBA, on the other hand, is sticking with its neutral monetary policy stance after quarterly inflation data came in very weak.

What do you guys think of my idea?

Happy time

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