Trading opportunities for currency pairs: AUD/NZD exchange rate deviates from the support level and rose above the resistance line. When looked strong bullish trend, the dynamics of the exchange rate is expected to continue to grow. The target is in the 1.1420 and 1.1565. This trading idea would not be valid anymore when the rate fell below 1.0895.
History: The idea for this pair last time I review on August 17th. At that time I reckon the break the resistance level at 1.1315 and 1.1565 quotation growth. Decline in oil prices and the weakening of the Chinese statistical encourage buyers to come out of long positions.
And as a result, the price back to 1.0916. On August 24, the exchange rate AUD/NZD attempted to break through 1.1562 level. On that day the stock market is collapsing or known as Black Monday. After experiencing growth, AUD/NZD pair never go back to the support level of 1.0926. Most ideas on August 17 realized.
What is interesting in this currency pair now?
The Australian dollar deviated from the support level after the RBNZ decided to lower the benchmark interest rate by 0.25% to 2.75%. This decision in accordance with market expectations, but the New Zealand dollar weakened against all currencies.
RBNZ governor, Graeme Wheeler announced about a possible continuation of monetary policy easing program, it will be based on economic data coming in. Meanwhile, the RBA this year is not expected to lower interest rates, so that confidence in the return of AUD/NZD exchange rate to 1.1398 and to 1.1563 intensified.
Note also that, ending trading above resistance level at phase correction. Lines are drawn at the closing price. I have also predicted target level for the next two weeks, which is at 1.1420 and 1.1565.
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