Kiwi traders gather ’round!
We’re all about the comdoll today as we explore NZD/USD’s range and a potential reversal for AUD/NZD.
What do you think of these setups?
NZD/USD: 1-hour
NZD/USD is about 30 pips away from a range resistance that has been containing the bulls since late January.
Kiwi bears even have the support of an overbought Stochastic signal!
Will yesterday’s rejection at the range resistance translate to a dip to the .6600 range support? The red candlesticks on the 1-hour chart are lookin’ good but you can wait for more signs of momentum if you’re not sure about selling NZD/USD just yet.
If bears fail to sustain the pressure and ends up finding support at mid-range levels, then you should also be ready for another retest of the .6700 resistance or even an upside breakout.
AUD/NZD: Daily
I spy with my eye a potential reversal in the making!
AUD/NZD is flirting with the 1.0800 psychological handle that comdoll bulls and bears have been minding since 2020.
What makes the setup more interesting today is that a bearish divergence has popped up on the daily chart just as AUD/NZD is showing hesitation (and even reversal) candlesticks near 1.0800.
Aussie bears who are confident of a looming reversal can short at the first signs of bearish momentum and target key areas of interest like 1.0550 – 1.0650.
If you’d rather buy the Aussie against Kiwi, though, then you’ll want to do it only once AUD/NZD has traded above 1.0800 for a while.
Good luck and good trading this one!
