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MujkanovicFX
Jun 1, 2020 1:09 PM

AUD/NZD FULL ANALYSIS: Overbought? Ready to sell? Short

Australian Dollar/New Zealand DollarFXCM

Description

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TECHNICALS:

The pair is completing a pullback to the broken wedge pattern which aligns with a recent resistance level, effectively forming a double top pattern. The 1.08 round-number level also provides a nice resistance to the upside.

1-hour chart: Signs of overbought conditions with strong selling pressure forming around 1.08 level.

FLOWS:

Positioning in both currencies is bearish, but shows signs of decreasing after the recent risk-on run.

ECONOMIC SURPRISES:

The NZD is well supported by recent economic reports which came in better than expected.

CORRELATIONS:

Yield differentials point lower, and the Australian vs New Zealand stock market ratio is still well below the current exchange rate.

Comment

Pinbar pattern forming on daily chart. Possible bull trap?
Comments
transparent-fx
I made a breakdown for AN as well, this is what I see on it
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