- Stop loss 1.131
- Entry level 1.115
- First Target at 1.10244
- Next targets to test at 1.0889, 1.0787
AUD/NZD’s consolidation pattern extended last week to 1.1274. While 1.1274 resistances were breached, the pair quickly dropped back below key resistance area on weekly and daily time frame. We’re holding on to the view that consolidation pattern has already completed at 1.1274 area and a larger down trend is possibly resuming with price action rejecting key resistance area with two bar reversal followed by pin bar signalling the shift in momentum. However, any decisive Break below 1.115 will confirm shift in momentum to downside bias and should be targeted at 1.10244 first. A break will target projection to 1.0889 and next at 1.0787. As long as 1.131 resistances hold, there is no indication of trend continuation. Thus, we’d expect fall from 1.115 to resume. Outlook on the pair remains bearish for the week.
- HIA New Home Sales and Private Sector Credit
- RBA’s Governor Glenn Stevens Speech
- AiG Performance of Mfg Index followed by The trade balance released by the Australian Bureau and later Retail Sales
- ANZ Activity Outlook and later GDT Price Index for the Kiwi
Area of Interest
- Strong Resistance level found at 1.1274 on Daily chart.
- Two bar reversal and Pin bar rejection at key resistance area.
- Resistance level is also the key flip area on weekly chart.
- Key area to target downside at 1.10244 with minor support level.
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