Hi traders,
here we have the AUDNZD pair, a pair that has been in a strong uptrend since mid March after China reported upbeat post-corona market reports and the RBNZ pointed at negative interest rates.
Now, the pair is trading at an important resistance level and at the upper resistance of a bearish wedge pattern. The pair formed an indecisive doji candlestick today.
Notice the bearish divergence on the 1-hour chart, which hints at weakness at least in the short-term.
Possible headwinds for the idea are recent economic reports from Australia, with the AUD getting a very high score from our CommaFX Economic Surprises Index.
Market positioning is bearish for both the AUD and NZD, but slightly more bearish for the NZD.
Cross-market correlations for the pair follow in the next post, so stay tuned.
here we have the AUDNZD pair, a pair that has been in a strong uptrend since mid March after China reported upbeat post-corona market reports and the RBNZ pointed at negative interest rates.
Now, the pair is trading at an important resistance level and at the upper resistance of a bearish wedge pattern. The pair formed an indecisive doji candlestick today.
Notice the bearish divergence on the 1-hour chart, which hints at weakness at least in the short-term.
Possible headwinds for the idea are recent economic reports from Australia, with the AUD getting a very high score from our CommaFX Economic Surprises Index.
Market positioning is bearish for both the AUD and NZD, but slightly more bearish for the NZD.
Cross-market correlations for the pair follow in the next post, so stay tuned.
