Forex Strategy Video: AUDNZD at Decades-Long Support, Time to Go Long?
• With nearly 30-years of historical price, AUDNZD is at the bottom of its range
• Fundamentals are shifting and simple measures say the pair is over-stretched
• This is a trade that has set up over months and years, entry will not be confirmed in a day
Market conditions change, and our strategy should reflect those changes. We have coded the DailyFX-Plus strategies for Breakout, Range and Momentum to adapt to these market shifts.
AUDNZD was one of my top trades as noted in the DailyFX 2014 Top Opportunities article. Now, after the currency pairing has dove to fresh eight-year lows in the wake of the poor Aussie jobs data; the over-extended readings seen on the monthly chart are bringing this setup into focus. The longer-term fundamentals are starting to turn and the technical view offers evidence that we could be near the end of the bear run. However, a chart based on monthly candles should not offer an entry on a daily or 60-minute frequency. In today's Strategy Video, we discuss my trade view of AUDNZD and the importance of applying the appropriate time frame to a strategy.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.