22 Nov AUD NZD Achieves Upside Target, Now A Short Candidate!
AUD NZD brings back some good memories of the earliest days of this blog! At the time I saw the upside potential on this pair there wasn’t much else around in the way of high probability trades. Even this swing long was a little nerve racking early on as it just took so much time to do anything, only being kept in the trade by the fact that I was getting paid positive interest due to the interest rate differential between the 2 currencies.
This is that original chart showing the long entry and subsequent target:
3 Months later and not only has that upside target been achieved, but things are looking a little overbought and I’m getting very interested in taking a swing short entry with an initial target of the Daily 200 MA, and ultimately the support line in the region of 1.2814 as shown in this chart:
For the time being, I’m quite not ready to take a short position, but will be watching the consolidation at current levels to gain clues of an ideal short entry, and also keeping an eye on that daily MACD for negative divergence. MACD hasn’t quite crossed yet so we need to wait for confirmation. The whole topping process may take some time but it’s something to watch closely as it develops.