AUDNZD continues to trade near multi-year lows despite having carved out what could be a massive inverse head and shoulders pattern.
That structure, by the way, is still very much intact but not yet confirmed. But just because it hasn’t set up for us doesn’t mean the pair is void of favorable opportunities.
One level I’ve been keeping an eye on over the past two weeks is trend line support that extends from the October 2015 low. This level was previously tested on three separate occasions and is once again supporting prices this week.
As long as this level holds on a daily closing basis, the odds of a move toward the 1.0875 handle remains high with a close above it exposing 1.1065 followed by 1.1330.
That said, it’s important to wait for bullish price action at current levels to suggest that a swing low is truly in place.
If sellers should manage to break trend line support, the next level of focus would be 1.0500. This area helped form the left and right shoulders of the reversal pattern mentioned above.
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