AUDNZD Approaches First Target; What’s Next?

I wrote about an AUDNZD short setup on February 10th.

The idea was to look for shorts on a breakdown of a rising wedge that had developed since December.

Our target for that breakdown was 1.0750, which several Daily Price Action members caught for a 250-pip profit.

AUDNZD broke down on February 22nd and is fast approaching our 1.0750 target.

There’s no guarantee the pair will stop at 1.0750, but given its significance since last November, the odds of a bounce are high.

We also know that a currency cross like AUDNZD likes to range.

So with that in mind, a bounce from the 1.0750 support area, followed by a test of the 1.0912 weekly open wouldn’t surprise me.

Of course, watching for a buy signal from support before entering will be imperative.

And don’t be surprised if we see AUDNZD consolidate for a few days in the 1.0730 to 1.0750 area.

Alternatively, a daily close below 1.0730 would confirm the breakdown and expose 1.0630.