18 Dec 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.