Range set: 62c (Aug'15) - 69c (Nov'15) Tested high in Dec'15, tested low Jan'16 Broke high in Mar'16 Project pull back to 50% retracement ~ 65c before a rally above 70c
Long term head and shoulders pattern forming. Weekly Trend Line broken, Trend reversal confirmed with break of 50 period moving average. Entry below break of upcoming support and 200 period moving average. I don't use TPs. (Excuse poor drawing of head and shoulders tool)
With the Federal Reserve finally raising interest rates and risk sentiment entering the market, there is potential for a bullish break of a falling wedge.
I am currently short this pair via short NZD/USD @ 0.687 see NZD/USD GUNDABAD ORC ON THE BACKFOOT 2 UPDATE long AUD/USD @ 0.699 see AUD/USD - DECISION TIME (UP) but looking to get short outright when we break 93c, SL 95c, TP1 87.5c (RR 2.75)
The Reserve Bank today reduced the Official Cash Rate (OCR) by 25 basis points to 2.5 percent. particularly in China. Combined with increases in the labour supply from strong net immigration, posting a financial stability risk. CPI inflation is below the 1 to 3 percent target range,