$AUDNZD 15 April 2011

Here is the chart I mentioned in my tweet. We have the completion of bullish harmonic formation, price reaching bottom of the channel and support level. Setup will be invalidated if 1.3180 level is broken.

Here is the ….. CHART!

AUDNZD

AUDNZD bullish harmonic setup

A $AUDNZD trade

I received a couple of tweets asking about AUDNZD. The question is summarized : Is it UP or Down? or Bullish or Bearish? As usual, I don’t answer this type of question. If you have been trading for sometime, you know why I do not answer these questions.

Have a look at AUDNZD daily chart, it is not hard to see why I am interested in getting into short position. There are mountains ahead in the bigger time frame, such as daily. Experience told me there should be some opportunities for the pair to be stopped, retraced before it actually tries to break through.  In addition, I am also holding Long position of NZDUSD.  Of course, this analysis can be very wrong at times, but, who knows in definite the pair is going UP or Down? Get yourself out quickly when it is wrong.

Anyway, I shorted AUDNZD slightly below 1.29 level and looking at  mid1.27ish zone as target. I have taken some profit off the table and moved stop to break even before the market closed for weekend.

Next week I will be looking to buy some AUDNZD if it manages to hold it well around 1.27-ish zone.

Here are the daily and 4-hour CHARTS.  (Click on the chart to view full chart)