Open an Account
☰
Open an Account
✖

AUDNZD Wobbles At The Highs Bulls May Wait For A Discount

Article By: ,  Financial Analyst
April 9, 2019 10:34 PM
The bullish wedge on AUD/NZD continues to play out nicely, having reached a 10-week high as of yesterday. But the trend may be in need of a pause, before further gains materialise. 

If successful, the bullish wedge targets the 106.37 highs. Whilst some may prefer not to label it a wedge due to the prominent spike form the flash-crash low, given the abnormal spike occurred during low liquidity conditions at the blink of the eye, I feel inclined to look past it where this pattern is concerned. Either way, prices have compressed as they retreated lower before its prominent break higher, so we continue to track AUD/NZD’s potential to reach for the 1.0760 highs in due course. 

The structure remains encouragingly bullish, although a pullback could be due, following yesterday’s exhaustion candle at the highs. The bearish pinbar was extended above its upper Keltner band and today’s prices have broken its low to confirm the short-term reversal candle. At time of writing, it hovers around the Feb high (1.0545) although a dip beneath here is no major threat to the bullish bias. In fact, from current levels we’d welcome a retracement as it could provide an opportunity to enter long at a more favourable price. 

Counter-trend traders could consider shorts below 1.0545 to target a Fibonacci ratio and / or the 20-day average. Trend traders may prefer to step aside and wait for prices to consolidate above such levels of support before considering whether they’d want to buy the dip. 

Keep in mind that RBA’s Assistant Governor, Guy Debelle just spoke and remains optimistic on employment, whilst reiterating risks from housing and China. Without the RBA deviating too far from script we could see some support for AUD/NZD so, perhaps the pullback could be limited.  


The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex, commodity futures, or digital assets, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to FOREX.com or GAIN Capital refer to StoneX Group Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.

The products and services available to you at FOREX.com will depend on your location and on which of its regulated entities holds your account.

FOREX.com is a trading name of GAIN Global Markets Inc. which is authorized and regulated by the Cayman Islands Monetary Authority under the Securities Investment Business Law of the Cayman Islands (as revised) with License number 25033.

FOREX.com may, from time to time, offer payment processing services with respect to card deposits through StoneX Financial Ltd, Moor House First Floor, 120 London Wall, London, EC2Y 5ET.

GAIN Global Markets Inc. has its principal place of business at 30 Independence Blvd, Suite 300 (3rd floor), Warren, NJ 07059, USA., and is a wholly-owned subsidiary of StoneX Group Inc.

© FOREX.COM 2025