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The AUDNZD has been the best performer so far in April.
Back on April 1st, I wrote a post about how the Australian dollar cross was gearing up for a bullish move.
Or in my words, a “short-term pop”.
The weekly bullish engulfing candle two weeks ago was the first sign that buyers wanted to take prices higher.
But the more convincing signal materialized on April 2nd when AUDNZD started to carve a new base above 1.0450.
Two days later, the pair was already up 100 pips.
Fast forward to today, and there have actually been four separate opportunities to buy AUDNZD.
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There was the initial breakout and retest of 1.0450 between the 2nd and 3rd.
That bounce on April 3rd carved an inside bar which was the second opportunity to buy.
The third signal was the April 8th inside bar which also cleared 1.0540/50, an area I’ve mentioned several times this month.
And last but not least, we had several retests of that 1.0540/50 (new) support area recently.
So as you can see, there have been plenty of opportunities to ride AUDNZD higher.
My target for this idea remains the 1.0670 resistance area.
That area is the former wedge support (new resistance) that extends from the 2015 low.
With AUDNZD now just 60 pips from the target, it’s probably too late to enter long, at least if you want to secure a favorable risk to reward ratio.
However, it will be interesting to see how the pair responds at 1.0670.
It isn’t an area I would short from without a bearish signal of some sort, but that resistance level near 1.0670 should be a formidable test for buyers.
I remain long from just above the 1.0450 area. I do want to see the 1.0540/50 region continue to hold as support on a daily closing basis.
My target remains the former wedge bottom near 1.0670.
Justin Bennett is an internationally recognized Forex trader with 10+ years of experience. He's been interviewed by Stocks & Commodities Magazine as a featured trader for the month and is mentioned weekly by Forex Factory next to publications from CNN and Bloomberg. Justin created Daily Price Action in 2014 and has since grown the monthly readership to over 100,000 Forex traders and has personally mentored more than 3,000 students.Read more...
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