Skip to content
News & Analysis at your fingertips.

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. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Daily Observations: A Non-FOMC Trade: AUD/NZD Triangle Seeks Resolution

Daily Observations: A Non-FOMC Trade: AUD/NZD Triangle Seeks Resolution

Christopher Vecchio, CFA, Senior Strategist

Looking for a pair that will be buffed from the Fed? One such possibility we've been exploring in recent days has been waiting for resolution in the AUDNZD triangle.

AUDNZD Daily Chart: August 2014 to Present

Typically, the preference is to trade a consolidation in the direction of the broader trend. For AUDNZD for several years, the trend has been lower. However, in recent weeks, an attempt at establishing a longer-term bottom may be in effect.

Accordingly, there are opportunities on both sides of the recent triangular consolidation in AUDNZD (with risk levels outlined below):

Trade Idea #1: Long AUDNZD

Entry: 1.1305 or above

Stop: 1.0895 or below

Risk: -410-pips (or more depending upon exact entry/stop)

Target #1: 1.1755 (pennant/flag 61.8% extension from April low) (+450-pips from 1.1305 entry)

Target #2: 1.2285 (100% extension) (+980-pips)

Trade Idea #2: Short AUDNZD

Entry: 1.0895 or below

Stop: 1.1305 or above

Risk: -410-pips (or more depending upon exact entry/stop)

Target #1: 1.0485 (+410-pips from 1.0895 entry)

Target #2: 1.0200 (+695-pips)

Target #3: 1.0019 (yearly low) (+876-pips)

For a more detailed explanation, please click the "read more" link below and scroll to the bottom half of the article.

Read more: One Last Data Hurdle to Clear for USD Pre-FOMC

--- Written by Christopher Vecchio, Currency Strategist

To contact Christopher Vecchio, e-mail

Follow him on Twitter at @CVecchioFX

To be added to Christopher’s e-mail distribution list, please fill out this form

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