AUD/NZD (SHORT - SELL)AUD/NZD (SHORT - SELL)
AUD/NZD is currently starting a consolidation with a possible bearish reversal. It has clearly reached a major resistance area on the daily and weekly chart. It could possibly still go up to 1.09350 before the trend reversal take full effect. The weekly and daily resistance area has been tested twice in the past and have failed, this is now the third attempt.
The AUD/NZD on the daily and weekly is clearly in an overbought status where a pullback and possible reversal could be starting to occur.
Should the AUD/NZD continue on its current bullish trend it has a two major resistance areas at at 1.09202 and 1.10212 to break through. The resistance area at 1.09202 has been tested and failed twice. The resistance area at 1.10212 has been tested and failed once. Both these strong resistance areas as on the daily and weekly.
The Monthly trend is Bearish
The Weekly trend is Bearish
The Daily trend is Bearish
Weekly Momentum Indicator turned from a Buy to a Sell.
a Harmonic Shark Bearish Pattern has formed, indicating a further potential reversal zone on the 4H.
Fundamental Consideration:
a RBA (Reserve Bank of Australia) meeting is occurring this Tuesday that will have an effect on AUD on monetary policy, including decisions on interest rates. These meetings typically occur monthly, with the outcomes closely watched by financial markets, economists, and the public because they can have significant impacts on currency values, interest rates, and the overall economy.
The outlook for the AU remains highly uncertain. While there are encouraging signs that inflation is moderating, the economic outlook remains uncertain. The December quarter national accounts data confirmed growth has slowed. Household consumption growth remains particularly weak amid high inflation and the rise in interest rates. After recent declines, real incomes have stabilised and are expected to grow from here, which is expected to support growth in consumption later in the year.
Meanwhile, growth in unit labour costs remains very high. It has begun to moderate slightly as measured productivity growth has picked up in the past two quarters but whether this trend will be sustained is uncertain.
The central forecasts are for inflation to return to the target range of 2–3 per cent in 2025, and to the midpoint in 2026.
The Retail Community Outlook for this trade is as follows:
Around 56629 SHORT – 97%
Around 3126 lots LONG – 3%
We are already actively SHORT on this trade
Our Entry at 1.09021
Our SL at 1.09490
Our TP at 1.06500 (take partial profits during your trade, do not just rely on one TP)
Good Luck – Trade Responsible
Use 1% risk per Position!
Always use a Trailing SL that you are comfortable with.
Always strive to continuously improve your trading strategy and knowledge
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