Charting AUD/NZD: A Turn in the Making?
January 20, 2011
Since the middle of December, AUD/NZD has fallen more than 5 percent. The weakness of the currency pair is more a function of the problems in Australia than the strength in New Zealand. The floods in Queensland sent the Aussie tumbling as investors grew concerned about the impact on the economy. However over the past 3 trading day, AUD/NZD has found a bottom that I believe could become a more significant turn in the currency. In the near term, there is no major resistance until 1.31 but a move to 1.32 is realistic. Not only has AUD/NZD broken out of a downtrend, which I define using Bollinger Bands (discussed in Little Book of Currency Trading), but it has also cleared the 100-day SMA. New Zealand economic data has been soft and there is a possibility that retail sales tonight will disappoint as well. In Australia on the other hand, next week’s inflation report could show strong price pressures, restoring concerns about the need for tighter monetary policy.
Posted in Australian Dollar, New Zealand dollar, aud/usd, australian dollar forecast, forex blog
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January 22nd, 2011 at 8:18 am
what happening in aud/nzd is a correction and not a bottomin…..if draw fib lines u’ll see that it was unable to clear the 31.8 level on friday’s close…so i expect it to fall down futhure.
January 22nd, 2011 at 1:53 pm
Hi Kathy,
January 22nd, 2011 at 2:00 pm
Hi Kathy,
I’ve purchased and is reading your book “The Little Book of Currency Trading”. I really enjoy the DBB indicator mentioned in your book. I am a beginner in the forex trading world. How do i set up the DBB in any forex trading platform? My demo account have the single 2.0 standard deviation. Do you have any suggestions as how I could set up DBB? My demo is with FXCM.
I also have the millionaire traders and am looking to buy your other books as well.
Thank you
Nancy Huynh, Markham Ontario