Missed the triangle breakout on this one? Don’t fret!
You might still have a chance to catch the selloff on this quick retest.
AUD/NZD: 1-hour
In case you missed it, this pair fell through its descending triangle support recently, indicating that a downtrend is in the cards.
Price is in the middle of a correction to the former support, though, so more Aussie bears might grab this opportunity to short.
In particular, AUD/NZD is testing the resistance at the 38.2% Fibonacci retracement level that’s right smack in line with the broken triangle bottom and 200 SMA dynamic inflection point.
A larger pullback could still reach the 50% Fib near the 1.1000 major psychological mark or the 61.8% Fib closer to the triangle top.
Technical indicators point to a continuation of the slide, as the 100 SMA is below the 200 SMA while Stochastic is heading south.
In that case, AUD/NZD might be in for a drop that’s the same height as the triangle or roughly 125 pips!
There’s not much in the way of top-tier reports from both Australia and New Zealand today, so you gotta keep close tabs on headlines that could drive market sentiment. Good luck!
