AUDNZD: Lower Buy opportunity within a long term Rectangle.

AUDNZD has been trading on a long term 1M Rectangle (RSI = 52.038, STOCH = 48.673, CCI = 42.575, Highs/Lows = 0.0000) within 1.02350 - 1.13350 since March 2016. I recently broke the 1W MA200 (yellow dotted line) in a candle sequence that appears to be replicating the March 2017 pattern.

This sequence (2017) followed with a strong rejection (on the second 1W candle after the break) towards the 1M Support and then bounced back up to towards the 1M Resistance. What leads us to believe that the same price action will be repeated, is that the patterns before that 1W MA200 break, are identical: First a Channel Down leading to the 1M Support, followed by a minor rebound to the 1W MA50 for rejection, new Channel Down and again a rebound towards the MA200.

Therefore the probabilities for replicating this are high and thus we will wait for the pull back (within 1.0500 - 1.0400) to buy towards a 1.11723 - 1.12929 Target Zone.





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