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.
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.
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