(Buy) AUDNZD Trade Plan for April 13, 2018Hello Traders,
Is it safe to say the NZD party is over? It sounds nice maybe because the party is truly over if technical indicators are anything to go by. Evidently, Q1 2018 was superb for NZD and from price action, I really think it’s time to cash out. Like we have been saying,
this currency pair is trending well in the oversold territory and what we need is a confirmation of bull pressure.
The sure way for affirmation is a stochastic buy signal and perhaps a bullish engulfing pattern. Odds of the latter happening is slim to none but what we can be certain of is that AUD shall end the week strongly. Already that long lower wick is indicative of bull pressure and if it ends this way then I recommend buyers to look for under-valued positions next week. That’s not all though. Buyers are actually jumping in at key support trend line as the weekly chart shows.
In the daily chart, price action is trading with a bullish divergence pattern. Besides, there is a stochastic buy signal and an engulfing candlestick following periods of AUD over-performance earlier in the day. Of course we can go a level deeper but that won’t make sense because there is a confluence of oversold stochastics in both time frames.
Advised by this, my AUDNZD trade plan shall be as follows:
Buy: 1.0545
Stops: 1.0480
Take Profit: 1.1050-This year’s highs.
Let me know what you think!!! Have a nice trading day
First Publish at Forex.Today under the handle--Dalmas Ngetich (Kipyegonn)
