AUD/NZD Trade Setup 2/08/2016

The currency markets have witnessed whipsaw price action as of late as stocks globally tumble, while the economic docket has shown mixed results. For this upcoming week, we expect a range slow south bound move in the AUD/NZD as the Chinese markets are closed for the week in observance of the Lunar New Year.

Meanwhile, from a technical perspective the AUD/NZD has slipped below  key trend line support and at the same time is holding below the 200 period moving average on the 4 hour chart. As the 20 period moving average slope is negative, we will look for the pair to hold below 1.0720 resistance in route of the 1.050 area.

AUD/NZD 4 Hour Chart
audnzd20816Prepared by Global FX Club Team

Trade Plan
Bias:                  Short 1.0720 – 1.0690
Stops:               1.0740–  1.0785
Target area:  1.050

Written by,

Global FX Club Team

AUD/NZD Trade Setup 2/08/2016