AUD/NZD Price Analysis: Update, short position now risk free for 3R
- AUD/NZD is in a bearish environment and p[rice has moved to breakeven.
- AUD/NZD positioning data favours a longer-term bullish outlook.
AUD/NZD price action is behaving appropriately in accordance with the weekly and daily charts, and analysis represented in the original article which can be read here:
Original daily chart analysis
-637357241207676636.png)
The market was expected to melt in a wave 3 to prior resistance structure.
The set up was established on the 4-hour time frame.
The market has moved to create a new resistance structure which is expected to protect the entry price.
The stop loss can be now moved to breakeven as follows:
-637358735114466315.png)
As it stands, the trade is now risk-free and offers a risk to reward ratio of 0:3.
However, according to CFTC positioning data ending 8 September, NZD has dropped some of its net-longs, with the trigger possibly having been the reiteration of RBNZ Governor Orr of his openness to further easing monetary policy.
While the spot market is a totally separate market to futures, the data at least supports a medium-term bullish view that fits the narrative of the longer-term charts.
A longterm analysis offers prospects to 1.1120 once the weekly correction is done.
-637358740682814293.png)
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
