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While there is reason from a fundamental perceptive to think this pair will trade higher, the price action is not reflective of that and has traded through and should close below strong horizontal support at 113.70. Looking at the MACD on the daily chart, the oscillator is below zero and thus momentum is not supportive of longs. It’s for this reason why I start with a small position size and add when the market is thinking as one.
Yesterday I looked at long AUD/NZD positions and continue to feel this pair has found a major bottom.