Since 2017 the market has traded in a range where we currently can observe the upper band can be reached as resistance. Without breaking the current resistance we might get a great entry today on the short term chart.
As Economists at Standard Chartered Bank lowered the Australian 2020 growth forecast, to -5.1% y/y, the worst annual contraction in Australia’s history, we’ve also seen some tremendous pressure on the Aussie today. While all economies are expected to contract the AUD/NZD is on a downward trend that provides an interesting short term SELL opportunity for us today.
So we SOLD AUD/NZD entering at 1.0665 with SL at 1.0690 and a target at 1.0420.
Should the short term market lead to further selling pressure ahead (also after the NFP number today) we could get positive feedback on the long term chart due to our good entry. If the market will head lower we would then increase our position below the 1.0600 level.