AUD/NZD – Daily outlook – 18 Oct

AUD/NZD – Daily outlook 18 October

Since early March we saw the Aussie losing ground against the Kiwi; however since August we’ve seen a very choppy range bound market. Last Friday saw a push up to a strong S&R level at 1.2830 forming bearish pin bar rejection. Monday’s trading session closed as an inside bar just below 1.2830 despite initially moving higher in early trading.

The strength and importance of the 1.2830 area cannot be ignored or go unnoticed. This level has supported the market from falling and has also resisted the market from rising in the past.

audnzddailyoutlook18oct

In the chart below we can see just how strong this S&R area has been. By zooming out we can see that 1.2830 has played a big role in the AUD/NZD since early 2008.

 

audnzddailyoutlook18octzoomedout

With last Fridays bearish pin bar rejection and Monday’s inside bar at 1.2830 shorting this market would be favorable. In the chart above you can see that each time the market has tested this level it has always pushed away providing some excellent trading opportunities.

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