Wednesday, April 1, 2009

AUD-NZD pair take support at .382 fib level

Daily chart of AUD-NZD pair

audnzd daily

I have marked the fib retracement levels. Price has bounced off strongly from the .382 fib level. This has also coincided with a head and shoulders formation on the intraday charts on NZD/USD which is leading to selling pressure on the kiwi (nzd) and making this pair shoot up.

This kind of price action at key support level does tell us that the pair can now be expected to continue its existing uptrend. Would look to buy at a dip since we’ve had a 220 point bar already, when its just the start of the day and we’ve the whole European and US sessions to look forward to. So though 220 point bar is not something we haven't seen before on the pair, its not something common too. Price should give back some gains sometime during the day and that’s when we look to enter into a long trade.