WorldWideMarkets Community

Forex Trading, Market News & Technical Analysis

Forex: Ideas You Can Trade - AUDNZD Bull Run Testing 1.13

Posted by Steven Hatzakis on Jun 23, 2015 1:33:00 PM

AUDNZD:  Very steep bullish trend since parity was reached brings pair to converging resistance under 1.13 today

The medium term chart below shows the Australian Dollar (AUD) versus the New Zealand Dollar (NZD). This currency pair is known as AUDNZD and is trading near 1.1283 around time of publication and just off the current session high of 1.1294.

Last time this pair was reviewed in Ideas You Can Trade was in February this year when the AUDNZD was approaching parity - and a bearish continuation was expected. Since then parity was reached - after some range-bound trading followed- and then the pair has subsequently recovered strongly up a very-steep bullish trend line. Since parity AUDNZD is up nearly 13% in the last few months since barely reaching 1.0000, and has enjoyed a very strong bullish run in that short period of time.

Today the pair is testing higher again - but hit under a resistance level coinciding at 1.1300 that consists of horizontal resistance -  at that price (1.13 had previously reversed a bull run in October 2014 and was mentioned in the last post about this pair). In addition, the AUDNZD is also near the upper resistance line of a converging bullish channel that is less-steep than the current bullish trend (see white channel on chart below)

If resistance holds under 1.1300 the pair could dive back into the less-steep bullish channel, whereas a break-above 1.1300 should be very bullish.  

Below are examples of how to trade a bearish continuation or a bullish reversal:

1.  BULLISH BUY ENTRY ORDER: Create a “Buy Entry Stop” @ 1.1305  with a Limit to take profit @ 1.1370 and a stop-loss @ 1.1255 Risk/Reward Summary: Limit risk = +65 pips profit / (-50) Stop-loss risk = Gain to Loss ratio =  1.30

2.  BEARISH SELL ENTRY ORDER: Create a “Sell Entry Stop” @ 1.1223 with a Limit to take profit @ 1.1186  and a stop-loss @ 1.1260 Risk/Reward Summary: Limit risk = +37 pips profit / (-37) Stop-loss risk = Gain to Loss Ratio = 1.00

Medium term daily candle chart:

AUDNZDDaily June 23 2015 note

Longer-term weekly candle chart:

AUDNZDWeekly june 23 2015 long term

Topics: forex trading, $AUS, AUDNZD, aussie kiwi, technical analysis, New Zealand dollar, aud, Aussie Dollar, aussie trading, NZD


Tools & Educational Resources

Forex 101LEARN MORE >>
Learn the basics of Forex and how to practice trading the markets.

GlossaryLEARN MORE >>
Confused by the language? Click here and search for key trading terms.

Browse our frequently asked questions and find your answers right away.

Access to the educational lessons, webinars and platform walkthroughs.


Get started with a FREE $10,000 Demo Account and experience the Forex Market RISK FREE!