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Last week we saw AUDJPY make an important move by closing below the 96 area. This area had previous served as resistance between April and July. The fact that the market was not able to maintain positive ground is a signal of potential weakness.
If the market can close below trend line support from February, we may have a short setup on our hands. Because this trend line is so clean on a 4 hour chart, we can look for a 4 hour close below it as confirmation.
Summary: Wait for a break below trend line support on a 4 hour close and then watch for bearish price action. Initial support comes in at 94.55
GBPNZD is still looking well-supported, but the pair may be in need of a pullback to shake any weak hands before the next move higher.
As I mentioned last week, the pair does appear to be putting in an inverse head and shoulders on the weekly chart. If that’s the case then we can look higher over the next several weeks and months to an initial objective of 2.225 with a final objective around 2.308.
Summary: Watch for bullish price action on a possible retrace back to the 2.035 area. The next key resistance comes in at 2.0970.
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