So far so good on my latest forex trade ideas so I thought I’d keep this lucky streak going by taking another setup. This time I’m looking at this simple range play on AUD/NZD.
As Big Pippin shared on today’s Chart Art, AUD/NZD is currently stuck inside a range visible on its 4-hour forex chart. Price seems to have made a bounce already since stochastic is on the move up, but I think it could still go for a test of the actual range support at the 1.0950 minor psychological mark.
In terms of fundamentals, both currencies are on the weak end but it seems that the Kiwi might be on shakier ground. After all, several analysts are predicting that the RBNZ would announce another interest rate cut by October, possibly pushing the Kiwi much lower. However, I’m also a bit worried about the Aussie, especially with the final Chinese PMI readings coming up later this week.
Because of that, I’ve decided to hold off setting any entry orders and just wait patiently for additional confirmation or reversal candlesticks to form around the range support. We’ve also got New Zealand’s ANZ business confidence numbers due on Wednesday and Australia’s building approvals and retail sales figures up for release later on, so there won’t be any shortage of catalysts for this pair.
Do you think the range will still hold or is it time for a breakdown? As always, I look forward to reading your feedback on my trade ideas!
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