The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
After closing shorts yesterday for a 50 pip profit, I am now seeing signs the pair may actually push higher in the short-term.
The RSIs have printed a series of higher lows, although given the extremely low levels seen in mid-December, the RSI (on the daily chart) the low was always going to be higher. Still, this is of interest.
The MACD was threatening to break below the signal line, which I would have taken as a bearish sign, however there are signs the MACD is actually pulling higher from the signal line instead, which would be bullish.
Looking at yesterday’s candle shows good buying support at the December and trend low, and this is very interesting.
Price action on the hourly and four hour charts look quite bullish as well, thus I am looking at long positions at current levels.
This is an aggressive trade and thus I have a tight stop on the trade, just below the recent low.
AUD/NZD is 1.0788 at the time of writing.