Where next for AUDNZD?
13th August 2015
AUDNZD has risen by over 12 big figures since April’s low and we look for that underlying positive tone to continue in the coming weeks.
Our Trend Table has been bullish from soon after that time – May when the break of the trend defining moving average confirmed the positive trigger given two weeks earlier in RSI (relative strength indicator).
Those 2 indicators have been unbroken since that time and until they are compromised, the trend is clearly positive.
It is interesting to note that the latest profit taking setback, in July, was very close to the moving average but rejected it, and the top of the weekly Ichimoku Cloud pattern, sharply.
The RSI indicator has been less dynamically positive since that setback and this is the factor that is of the greatest concern currently.
So we’re looking for new highs to be posted in AUDNZD soon to maintain bullish momentum and target 1.1468 then 1.1686.
The risk level is currently 1.0899 but even without breaking the moving average we will look for reduce exposure significantly if/when RSI makes a ‘dead’ cross of its moving average.
