By Dan Eduard
Over the last week and a half, the AUD/NZD has experienced a bearish trend that has brought the pair down over 300 pips. Technical indicators are now showing that the pair may be in store for a bullish correction in the near future, providing forex traders with an excellent opportunity to open up long positions for some potentially significant profits.
We will be looking at the daily chart for AUD/NZD, provided by Forexyard. The technical indicators being examined are the Relative Strength Index, Stochastic Slow and Williams Percent Range.
1. The Relative Strength Index has recently crossed into the oversold zone, in what is typically a sign that a reversal is likely to take place. Furthermore, it appears that the indicator is beginning to angle upward in a clear indication that the pair may turn bullish in the near future.
2. The Stochastic Slow has recently formed a bullish cross. Traders can take this as a clear sign that a trend reversal may be imminent.
3. Finally, the Williams Percent Range has crossed well below the -80 level, in what is the clearest sign yet that the pair is in oversold territory. Traders will want to pay attention to this indicator. When it begins to turn upward, it will be a likely sign of impending bullish behavior.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.
