We see a Bearish Gartley formation on AUD/NZD charts. The pair dipped below strong trendline support on Dec 28th, but bears struggling to take the pair lower.
Overnight rebound in crude supported commodity currencies such as the Australian dollar on Wednesday.
AUD/NZD trades a tight Asian range - opened the Asian session +0.2% at 1.0614, after a fresh 1.0568 low in London yesterday.
5, 10 & 20 DMAs trend south - bias still lower, current bearish setup could see a test of the 1.0497 October trend low, which is a potential reversal zone.
Stochs remain in oversold territory with a bullish crossover, RSI on dailies has also bounced-off 30 levels and is currently at 37 and points north.
We would wait for further confirmation to go long. Watchout for the following to confirm bullish bias:
- Decisive close above Trendline
- Stochs rollover from oversold territory
- MACD line crossover on signal line
On confirmation, we would expect completion of the Bearish Gartley, will go long to target 1.1086 levels.
Overnight rebound in crude supported commodity currencies such as the Australian dollar on Wednesday.
AUD/NZD trades a tight Asian range - opened the Asian session +0.2% at 1.0614, after a fresh 1.0568 low in London yesterday.
5, 10 & 20 DMAs trend south - bias still lower, current bearish setup could see a test of the 1.0497 October trend low, which is a potential reversal zone.
Stochs remain in oversold territory with a bullish crossover, RSI on dailies has also bounced-off 30 levels and is currently at 37 and points north.
We would wait for further confirmation to go long. Watchout for the following to confirm bullish bias:
- Decisive close above Trendline
- Stochs rollover from oversold territory
- MACD line crossover on signal line
On confirmation, we would expect completion of the Bearish Gartley, will go long to target 1.1086 levels.
