We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bearish
USD/JPY
Mixed
Gold
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Bearish
More View more
Real Time News
  • Forex Update: As of 13:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: 0.01% 🇪🇺EUR: -0.15% 🇨🇦CAD: -0.28% 🇯🇵JPY: -0.57% 🇦🇺AUD: -0.83% 🇳🇿NZD: -0.88% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/aefGNZQYqS
  • Heads Up:🇺🇸 USD Continuing Claims (FEB 8) due at 13:30 GMT (15min), Actual: N/A Expected: 1717k Previous: 1698k https://www.dailyfx.com/economic-calendar#2020-02-20
  • Heads Up:🇺🇸 USD Initial Jobless Claims (FEB 15) due at 13:30 GMT (15min), Actual: N/A Expected: 210k Previous: 205k https://www.dailyfx.com/economic-calendar#2020-02-20
  • Heads Up:🇺🇸 USD Philadelphia Fed Business Outlook (FEB) due at 13:30 GMT (15min), Actual: N/A Expected: 11 Previous: 17 https://www.dailyfx.com/economic-calendar#2020-02-20
  • ECB Minutes - ECB needs to see more data to see if tentative signs of stabilisation provide firmer ground for optimism
  • What are the six different types of stocks every trader should know? Find out from @WVenketas here: https://t.co/yO3JalkqUU https://t.co/npl9Clt4HX
  • Heads Up:🇪🇺 EUR Publication of account of ECB's Monetary Policy Meeting (JAN) due at 12:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-02-20
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.22%, while traders in France 40 are at opposite extremes with 81.38%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/1y2GkWMVR1
  • Hey, traders 👋 do you want live AMAS with our analysts, market updates and tools to improve your trading strategy? Join us now on Instagram! 👉 https://t.co/pHGzVMqsC4 https://t.co/Qpujtb2z8I
  • Commodities Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.25% Gold: 0.01% Silver: -0.71% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/pwFdAnZnr8
Sideways AUD/NZD Channel Provides Swing Trading Opportunity

Sideways AUD/NZD Channel Provides Swing Trading Opportunity

2011-02-08 22:31:00
Christopher Vecchio, CFA, Sr. Currency Strategist
Share:

The AUD/NZD pair has been range bound for nearly all of 2011 thus far, stuck in an approximately 400-pip swing between just-north of 1.3200 and just-south of 1.2800. During this time, however, it appeared that the pair might have formed a double bottom, a major reversal pattern, within this sideways channel. Nonetheless, It appears that the reversal may be over as the AUD/NZD pair has faded slightly from the top of its range top. With economic data due over the next few days that could show signs of weakening fundamentals for Australia and news that could spur New Zealand interest rate hawks, the AUD/NZD pair could begin its next leg down towards the bottom of the sideways channel.

Levels to Watch:

-Range Top: 1.32193 (Trend, 61.8 Fib)

-Range Bottom: 1.27772 (Trend)

2011-02.08_EDITOR_body_Picture_1.png, Sideways AUD/NZD Channel Provides Swing Trading Opportunity

Charts created using Strategy Trader– Prepared by Christopher Vecchio

Suggested Strategy

  • Short: Place an entry at 1.31151 (50-SMA)
  • Stop: Set the stop to 1.32193 (61.8 Fib, 42 pip risk)
  • Target: The first target is 1.30495 to 1.30344 (38.2 Fib, 100-SMA)

Trading Tip – The AUD/NZD pair has been range bound for nearly all of 2011 thus far, and after reaching the top of its channel earlier in the session, it has since fallen once again. The pair bounced off of the 38.2 Fib retracement on the December 23 to January 31 move, only to work its way back towards the 50-SMA. Currently, it trades between its 50-SMA and 100-SMA, at 1.30985. The AUD/NZD currently faces a declining RSI on its daily charts, as well as Slow Stochastic crosses now issuing a sell signal, with the %D at 90.43 and %K at 86.56. However, shorter-term charts – such as the 1-hour and 4-hour – suggest that the pair may rise and test its range top once more before starting to fall.

Event Risk for Australia and New Zealand

Australia – The Aussie fell against most majors today on the heels of disappointing business sentiment data, and more news across the wires in the overnight could push traders to sell off the Aussie for a second consecutive day. The Westpac gauge of consumer confidence, which has fallen by more than 5 percent three of the past five months is due, and could weigh on the Australian dollar. Later in the week, labor market conditions will be examined, with estimates showing an increase in the labor force; the unemployment rate is expected to hold, however.

New ZealandWhile the first round of data due this evening will likely have an insignificant impact on the Kiwi, later in the overnight session housing sector data is expected across the wires for New Zealand, which could potentially be the fundamental catalyst to cause a sharp depreciation in the AUD/NZD. Housing sales have continued to fall, though the market has improved. Later in the week, a strong jump in by food prices in January could awaken interest rate hawks as inflationary pressures potentially become a concern.

Data for February 7 to February 11

Data for February 7 to February 11

Date

Australian Economic Data

Date

New Zealand Economic Data

Feb 8

Westpac Consumer Confidence (FEB)

Feb 8

NZ Card Spending (JAN)

Feb 10

Employment Change (JAN)

Feb 9

REINZ House Sales (JAN)

Feb 10

Unemployment Rate (JAN)

Feb 10

Food Prices (JAN)

Written by Christopher Vecchio, DailyFX Research

To contact the author of this report, please send inquiries to: instructor@dailyfx.com

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.