AUDNZD Short Opportunity - Catch the Downtrend
AUDNZD is traveling in a trend channel that's visible on the 1-hr chart. Price deflected off the upper guardrail today and, as expected, sank lower, solidifying the downtrend. The target for the AUDNZD is the lower guardrail on the channel. Since price is expected to go much lower, now is the time to catch the downtrend. It would be nice to wait for a pull back before locking in a short position.
On the fundamental side, given rising COVID-19 cases in Australia, it is clear that lockdowns will have to be prolonged, and we will likely see more and more cases as the days go buy, leading to worsening sentiment in the AUD. Since New Zealand is doing relatively better in controlling the virus, I expect price will continue in a downtrend for the next few days, though we can expect consolidations and corrections along the way.
On the fundamental side, given rising COVID-19 cases in Australia, it is clear that lockdowns will have to be prolonged, and we will likely see more and more cases as the days go buy, leading to worsening sentiment in the AUD. Since New Zealand is doing relatively better in controlling the virus, I expect price will continue in a downtrend for the next few days, though we can expect consolidations and corrections along the way.