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AUDNZD Finally Breaks Trend Line Resistance, Targets 1.0765

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We’ve been tracking the AUDNZD since November 8th just hours ahead of an RBNZ rate decision and the U.S. elections.

Namely, we were interested in the potential for an inverse head and shoulders pattern. At the time there wasn’t a lot to go on but the 530 pip measured objective was enough to earn the pair a spot on our watch list.

For more information, see this post.

Just last week I mentioned how the bullish potential was alive, but confirmation was needed. If you recall, that confirmation would come in the form of a daily close above trend line resistance that extends from the October 26th high.

This past Tuesday challenged the level for the fourth time since its inception, but the bulls couldn’t quite get the job done.

Fast forward to today, and we can see the level has finally given way to buyers. Although the pair lost a bit of steam just before the close, it did manage to breach the trend line by 20 pips by the end of yesterday’s session.

From here I’ll be watching for bullish price action near the 1.0420/30 area. Key resistance comes in at 1.0765 with two minor areas near 1.0500 and 1.0600.

Want to see how we are trading this setup? Click here to get lifetime access.

AUDNZD trend line

Leave a Comment:

4 comments
imi says

Hi and thanks for all your information
May i ask you tell traders your prediction for opening position before important news of today because all the traders can explain pair movement and direction by saying, if it breaks goes that way and if not goes this way but if you can find out from Price Pattern and sure about it tell us today your prediction for opening position before important US News today, please.
Have a nice day

Reply
    Justin Bennett says

    I’m not sure what you mean. Everything I have to say about the AUDNZD is in the post above. And at the moment, it’s up 60 pips from where it was when I wrote this.

    Reply
Praise says

Hey there I’ve been reading through the trade setups for nzdcad and audnzd I’d just like to know which moving averages do you have on your day chart?

Reply
    Justin Bennett says

    I use the 10 and 20 EMAs.

    Reply
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