Switching tact - looking at AUD/NZD longs

Potential new strategy: long AUD/NZD, with a stop loss at 1.0720 and a potential target of 1.0900.

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.

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