Technical Analysis: AUD/NZD Parity Play

April 16, 2015

AUD/NZD has been racing towards parity over the last few months and last week got within 20 pips of the mark. Price then printed a doji that we discussed in that Tuesday’s Morning View, and buyers came in just above the major psych level.

Of course that day the RBA left interest rates on hold which surprised the market and caused the first big bullish 4 hour candle on the chart below. Price then backed up today with better than expected employment numbers, causing another big bullish 4 hour candle.

AUD/NZD Daily:
anthu
Click on chart to see a larger view.

AUD/NZD 4 Hourly:
anthu2
Click on chart to see a larger view.

What I like, is price has re-tested the post-RBA high, but couldn’t push through it.

With the RBA expected to cut interest rates next month, price in a strong down trend and this area an expected level of supply, this could be seen as a value area to get short into.

Check out the rest of our technical analysis posts. Leave a comment below or mention @VantageFX on Twitter.

Dane Williams – @VantageFX

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