Will We SELL Off Again @ 1.105 ??This pair has been stuck in a range between 1.105 & 1.055 for nearly 2 years and has just broke out of the short term resistance @1.095
The next logical move now is for the pair to test the top of the 2 year range above 1.10 and as it does this is where I will be looking for SELL setups.
The daily chart below gives you a clearer picture of the 2 year range and also shows you (red arrows) the 2 attempts made last year to break above 1.105 both ended up in a heavy reaction and price dropping back down to the bottom of the range.
If you zoom out the Monthly charts (image below) you can see the AUDNZD has been stuck in a longer term range between 1.14 -1.02.
This could indicate that buyers may look to push up through the 1.105 level though the Monthly chart above shows that this level has always been a hard nut to crack and there always seems to be a reaction here.
This is what I fully expect to occur I will look for short term SELL setups first looking to target the previous resistance @ 1.085 for profit taking.
This is a very basic range trading setup and would be invalidated if we get a weekly or monthly close above 1.105 as if this occurs a move up to 1.14 is highly likely.
Let me know what you think in the comment section below
