The AUDNZD position test is coming tonight

by | February 5th, 2018, 14:34:52 | Australia, Economic Data, Technical Analysis

So far the supports hold but …

Last Friday I bought small AUDNZD into the 1.0830/50 support zone ( trend line, 200DMA and 50% fibo of the July-Nov run). For tonight I will watch it closely as the major test is underway.
WE have RBA’s rated decision but ahead of it the retail sales which, to my surprise and cost being long EURAUD that day,  had quite an impact last month.
So I’ll be watching both pretty closely with only my first small purchase in the books.
If after these events we confirm the hold I’ll be adding to the longs looking for a break back through 1.0935/40 in an attempt to retake the 1.10 handle.
A break below the 1.0830/50 support zone will see me reverse the position as the market will try to gun for the next levels down at 1.0708-23 , possibly even 1.0590 if RBA comes out very dovish, which let’s be clear is not my preferred scenario, I’m tilted more towards a neutral stance.
Going into the releases with a milder view on AUD compared to NZD but I’ll let the PA decide on which side of the support I need to be positioned.

K-man
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