First of all I should add that my track record in trading the NZD is pretty poor, only ‘worsed’ by my CAD record but God loves a trier they say so I’m having another dip!
My technical analysis of AUD/NZD tells me that a bottom has been reached and that we now see a turn. The secondary weekly trendline drawn from 1.17 through 1.19 and 1.2070 was touched at 1.2320 and the market has started to bounce. My wave analysis suggests that this low was a 3rd of a 3rd, suggesting that the dip is over and we return now to the primary uptrend. There’s also a possibility of a strong basing formation but this needs to be played out over the next 5 to 10 days. I bought the dip last night and I’m looking to play 1.2480/1.2680 short-term range before we break higher to 1.30+ again. (I’ve also sold a small position in NZD/USD as I think the AUD/USD might struggle to regain a foothold above 1.0500).
