AUD/NZD Weekly Signal- Jan. 7, 2014

|

By: John Ursus

AUDNZD Signal 1714

Timeframe: W1 Recommendation: Long Position
Entry Zone: 1.0775 – 1.0800 
Take Profit Zone: 1.1775 – 1.1800
Stop Loss Zone: 1.0575 – 1.0800

The AUDNZD has endured a strong correction which created a big gap between current price action and its next resistance level presented by the descending fan of its Fibonacci Retracement Fan. The AUDNZD is currently carving out a new support level which has not been confirmed yet and remains pending.

This currency pair should bottom out around current levels which will leave it with very limited downside potential while the upside opportunity is excellent. Profit taking could add a short-covering rally as well and further increase buying pressure.

Professional trader and technical analyst with over one decade of experience. John believes that being a successful trader means you have to be in the minority and defy what is popular. Trading is an art form and not science and there are more myths about trading than there are successful traders.