Trade Of The Day: AUDNZD To Test Key 1.11 Resistance

AUDNZD – To test key resistance area

AUD traded stronger overnight on comments from RBA Governor Stevens signaling a halt in interest rate cuts during December. In his speech, he suggested that the market should “chill out” and reassess the data after Christmas.  Just like its Australian counterpart, NZD continued to trade in a tight range before extending its gains through key resistance. Thanks to a rebound in global commodity index partly resulted from increased tension between Turkey and Russia. The softening greenback also played a supportive role for the Kiwi as the only domestic highlight this week comes to tomorrow’s trade balance figures.

While 1.1050 supports intraday downside reactions anticipate a test of 1.11 the equality swing objective. expect a reaction here on the initial test.

Trade Idea

  • Watching for intraday reversal patterns on the first test of the 1.11 resistance zone where the AB=CD equality swing completes.
  • Will venture short here looking for price to correct recent gains back towards 1.09/1.0850 where I will reassess price patterns.

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