Price action reveals signs of a possible reversal since AUD/NZD
has reached the multi-year low zone (~1.0530-1.0428). Divergence on Stochastic
is evident on the monthly, weekly and daily time frames combined with a possible low test in formation on the monthly chart, indecision engulfing
bar at a potential end of cycle, and bullish
behaviour also hinting at a turning point following the break of an inside bar
below the 2005 low (1.0428). Although, as per my trading rules, I've missed a long entry, I'll be looking for an opportunity to go long at the end of a pull back, once price begins cycling upward at the break of the previous high (1.0571). Also watch out for possible consolidation below the ~1.0535 level until price action indicates it's intentions further. I'd be eyeing a long term target at 1.3500 unless price shows otherwise.