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Day four: our AUD/NZD trade idea

AUD/NZD has found good support around the 1.0750 level and the pair seems to be tracking sideways ahead of today’s retail sales.

The RSIs on the hourly chart (see chart below) are making higher highs and lows, while the MACD is tracking higher and a break of the top side of the range could see the pair back above 1.08.

The AUD/NZD's daily chart is showing levels still below the October downtrend and we haven’t been provided with our new sell signal, with the MACD still above the signal line. Indecision is clearly seen on the daily chart and with this in mind I am happy to take profits on the position, with the pair trading at 1.0775 at the time of writing.

Having sold the pair at 1.0825, I have made 50 pips

For those who think today’s November retail sales numbers will be less than +0.4% should continue to hold shorts as a weak number will clearly push the pair lower. If this does materialise then I will look to re-enter shorts on a closing break of the recent low.

AUD/NZD

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