AUD/NZD(Netural)
Hello everyone :)
The main pick, personal for me is watching AUD/NZD. We can see that this is a trending chart and the main reason for this is because they showed the world, how to handle pandemics. This can watch as a two-case scenario. Why? Well from the fundamental point of view, we have as I mention before, handle pandemics very well, today New Zealand reports 0 cases in the whole country. Investors can watch this from the angle as like: okay they handle the situation very well, the economy is stable, maybe at the moment New Zealand is the safe-haven destination. But on the other side, we have also Australia who is handling the situation also as well(they reported today 2 new cases), but the new Bird flu: Russia detects the first case of H5N8 bird flu in humans, which can give also a huge boost to an Australian Dollar because as we know that Australia is the second-largest producer of gold(in big case they are connected) and when something wrong is going on at the geopolitical scene, world health scene, gold is going up as a world uncertainty.
When to start thinking about entering into the trade? My opinion is to wait and anticipate the behavior at the Asian session and start to look for a trade at the European session( Frankfurt and London exchange). But here is a catch. Well if you wanna keep trade for a whole day and start looking for the next Asian session and I would watch a
RBNZ( Reserve Bank of New Zealand) rate statement. If RBNZ keeps the interest rate, or they raise them, we will see short-term volatility on the market on the downside against AUD, but if they wanna lower them, they will push the market upside against NZD.
From a technical point of view as I mentioned before, we have a very interesting trading market, in the sell zone. For sell setup, we have a regular bearish divergence and that can be our sign, okay maybe is the market out of steam, and maybe is this a reversal time for AUD/NZD. Where to enter for the sell option? Well, I will wait for breaking the triangle pattern support level and waiting for the bearish engulfing pattern or some other bearish price action. Extra confirmation will be breaking EMA of 21 and 50 and if the price starts to move out below our EMA˙s, it can be a sign of good bearish momentum. TP will be a price of 1.06126( depends on your support and resistance strategy). Our SL can be above the nearest wicks.
For buy options, I prefer to wait to break the triangle pattern, making HH, HL with of course price action, testing our support level and there is at the moment EMA of 21 and 50 below and that can be a sign of bullish momentum. SL will be below the nearest LL and support line.
WHAT DO YOU THINK ABOUT THIS SETUP?
Please let me know in the comment section!
THANKS FOR READING!
If you have some different opinions please let me know and if you like this please hit that like button and give me support, I will appreciate every support.
Remember this analysis is not 100% accurate. No single analysis is. To make a decision follow your own thoughts. The information given is not Financial advice.
The main pick, personal for me is watching AUD/NZD. We can see that this is a trending chart and the main reason for this is because they showed the world, how to handle pandemics. This can watch as a two-case scenario. Why? Well from the fundamental point of view, we have as I mention before, handle pandemics very well, today New Zealand reports 0 cases in the whole country. Investors can watch this from the angle as like: okay they handle the situation very well, the economy is stable, maybe at the moment New Zealand is the safe-haven destination. But on the other side, we have also Australia who is handling the situation also as well(they reported today 2 new cases), but the new Bird flu: Russia detects the first case of H5N8 bird flu in humans, which can give also a huge boost to an Australian Dollar because as we know that Australia is the second-largest producer of gold(in big case they are connected) and when something wrong is going on at the geopolitical scene, world health scene, gold is going up as a world uncertainty.
When to start thinking about entering into the trade? My opinion is to wait and anticipate the behavior at the Asian session and start to look for a trade at the European session( Frankfurt and London exchange). But here is a catch. Well if you wanna keep trade for a whole day and start looking for the next Asian session and I would watch a
RBNZ( Reserve Bank of New Zealand) rate statement. If RBNZ keeps the interest rate, or they raise them, we will see short-term volatility on the market on the downside against AUD, but if they wanna lower them, they will push the market upside against NZD.
From a technical point of view as I mentioned before, we have a very interesting trading market, in the sell zone. For sell setup, we have a regular bearish divergence and that can be our sign, okay maybe is the market out of steam, and maybe is this a reversal time for AUD/NZD. Where to enter for the sell option? Well, I will wait for breaking the triangle pattern support level and waiting for the bearish engulfing pattern or some other bearish price action. Extra confirmation will be breaking EMA of 21 and 50 and if the price starts to move out below our EMA˙s, it can be a sign of good bearish momentum. TP will be a price of 1.06126( depends on your support and resistance strategy). Our SL can be above the nearest wicks.
For buy options, I prefer to wait to break the triangle pattern, making HH, HL with of course price action, testing our support level and there is at the moment EMA of 21 and 50 below and that can be a sign of bullish momentum. SL will be below the nearest LL and support line.
WHAT DO YOU THINK ABOUT THIS SETUP?
Please let me know in the comment section!
THANKS FOR READING!
If you have some different opinions please let me know and if you like this please hit that like button and give me support, I will appreciate every support.
Remember this analysis is not 100% accurate. No single analysis is. To make a decision follow your own thoughts. The information given is not Financial advice.
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