Wednesday, April 8, 2009

AUD NZD rally off .618 fib support level (update)

AUD NZD Hourly chart

aud nzd hourly 7.4.09

This is an update on an earlier post a few days earlier. That can be found here.

Well in my last post I had marked out the .382 Fibonacci retracement level as a key support area for the pair which it has tested multiple times & which has withstood the tests and provided support on numerous occasions  (marked on chart above). After the second round of testing of the level yesterday, the pair took off on a major 300 pips + rally. This support at a key fib level & the subsequent large sharp rally suggests that the long term uptrend which started sometime in 2008 is all set to continue, and we should stick to the major trend and thus look to go long on any dips.