If we don't get a considerable retracement soon and we go straight up from here then I will surely be looking to short this pair at the of the last big move down. Especially since we could see confluence with a possible test of the "down" trendline!
Initial SL above the 61.8 fib level but that could be adjusted very quickly. If we see a good drawback from the and/or 50% fib level then SL can be tightened with the as a guide.
3 possible targets are on the chart, I would be looking to take 50% at TP1, 30 at TP2, 20 at TP3.
If we get a big retracement before we get to the 50% level than I will cancel my sell orders.
I think they were highly correlated for the last week because of general dollar weakness.
Between NZD and AUD the NZD has been outperforming AUD for a month now!
So you are correct I think but it would for instance also be possible for NZDUSD to rally further while AUDUSD ranges for a while (gap between AUDUSD and NZDUSD would widen) and then they both fall for instance because of a dollar related fact... In any case dollar strength or weakness will have the most influence on these two so when dollar makes considerable moves then the correlation between NU and AU will be better of course...
This chart should explain the current situation: