Daily Price Action
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AUDNZD: Return of the Bulls?

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Important: I use New York close charts so that each 24-hour period closes at 5 pm EST.

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The AUDNZD tested a critical support level last week. The trend line that extends from the 2015 low has received a considerable amount of action over the last three years.

It was also responsible for triggering the 900 pip rally that began in June of last year.

AUDNZD three year trend line support

This Australian dollar cross tends to spend much of its time consolidating, but when it does break out, it’s quite aggressive. Judging by the price action since late January, we may be nearing one of those aggressive breakouts.

The falling wedge pattern below hints at a push higher over the coming sessions. And the fact that the AUDNZD is fresh off of the 2015 trend line shown above only supports the notion of higher prices.

However, just like any technical structure, it’s imperative to wait for the break. Until buyers secure a daily close (using a New York close chart) above wedge resistance (currently 1.0590), there isn’t anything to do here.

If they do, key resistance on the way up includes 1.0660 followed by 1.0800. The latter will be my target if buyers can get the job done over the coming sessions.

Alternatively, a daily close below 2015 trend line support near 1.0500 would negate the bullish outlook.

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AUDNZD daily wedge pattern

Leave a Comment:

14 comments
Noel says

Powerful analysis, I really love your trading style.

Reply
    Justin Bennett says

    Pleased to hear it. Cheers.

    Reply
RV says

Would these be even 2R trades to risk money on as per trainings ?

Reply
    Justin Bennett says

    Only you can answer that. It depends on your target but also the placement of your stop loss, and you can’t determine that until after the breakout/retest.

    Reply
Steve says

Justin – great insight. I am long here as the monthly chart is also at a key area, so I am hoping for some really good follow through, if the monsters want to play.

Reply
    Ade says

    Hope you have stop loss. Monthly candle is many pips.

    Reply
Tijani sheidu says

Good job

Reply
Chris says

I feel for those who where enticed to go long by that long bullish candle 900 pips ago lol. I see a lot of corpes since then….Very good job to have kept your fingers on its pulse since then

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Sikhumbuzo says

Hi Justin, i really like how you can articulately narrate a trade decision. i wanted to find out what your views are, around placing a trade: is it better in the long to wait for the market to react to a key area (in this case “1.0500”) before pulling the trigger or is it better to put a pending order around that key area?

Reply
    Justin Bennett says

    I’m (mostly) an end-of-day trader, so everything revolves around the New York 5 pm EST close.

    Reply
Konrad says

Hello, how long pin bar signal on D1 is valid for you? I mean how many D1 candles (or other candles) couses this signal is not still valid.

Reply
    Justin Bennett says

    I don’t understand the question. There is no pin bar here. It’s all about the levels.

    Reply
      Konrad says

      The question is general not referring to this chart 🙂

      Reply
ab says

look at the eur/nzd short now

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