AUD NZD – Still Waiting For The Reversal To Enter Short

AUD NZD – Still Waiting For The Reversal To Enter Short

As any regular readers will already know, I had a wonderful swing long on this pair throughout the summer of 2011 and have since been waiting for it to show it’s hand as to the next direction.

This Week there have been some developments and it’s getting closer to giving us some clues as to whether it will finally reverse at the current resistance or at the very least offer a credible trade-able correction.

My last commentary on AUD:NZD can be found here.

The daily chart is showing signs of stalling at what was previously the upside target for the summer swing long:

In reality I should already be short from the circled area having since recognised that the double top fitted perfectly within the rules of the very reliable 2B top method as shown on this 4 hourly chart:

The key now is to wait for a retrace with a view to entering short on the next lower high and an ideal, if not slightly optimistic target at the support area of 1.2814 as defined by the support line on the daily chart above.

If and when this trade is entered I will place a comment beneath this post detailing the entry and a full map of the targets.

  • RS2OOO
    Posted at 22:46h, 21 December

    I entered short today as price appeared to print a lower high.

    Definitely not confident at this stage of the trade, however a 40 pip stop loss is all that was required so it’s not a loss that would concern me based on the potential reward available.

    Entry was 1.3111 and that is exactly where price is as I type this.

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  • RS2OOO
    Posted at 23:57h, 03 January

    I re-entered this short today as price failed to break above the previous day’s high. There is some upside risk so I’ll play it by ear and see if tomorrow can break todays low.

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  • RS2OOO
    Posted at 18:56h, 11 January

    Closed AUD:NZD today – Daily chart looks like it could just keep going down, but I thought there might be hourly support at 1.2938 so I closed. Main reason was because the financing is so expensive on this pair and it can consolidate sideways for so long, the financing starts eating into profits, so I just closed it.

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