Strengthening AUD Hits Targets 1 and 2

Last week week in my first trading post of 2017 I noted the strength in the AUD and NZD as the antipodean pair made a good start to year. Specifically I wrote on January 4 about AUDGBP “The AUD has benefited from the rise in Gold prices in that last few sessions and doubts continue to hang on the GBP thanks to the economic and political uncertainty that clouds the Brexit negotiations. Technically the pair has rallied into resistance at 1.7170 a number of times recently only to be rejected each time. The tall up wick and near Shooting star candle on Monday, followed by a switch in the Parabolic SAR and break of the 38.2 Fibonacci level and 20 DMA yesterday triggered an entry at 1.6945.  Target 1 is at the 20 DMA and 14DATR level at 1.6815, Target 2 is 1.6600 a key psychological level, 50.0 Fibonacci level and previous support area.  Both targets were hit earlier this week (January 9) for a gain of 345 pips.  In the same post I also took a long position on AUDCHF at 0.7411 with target 1 0.7490 and target 2 0.7580, target 1 was also hit January 9 for a gain of 79 pips. Target 2 remains within reach as the gold rally continues; earlier today it breached the key $1200.00 level.

The NZD trade was posted yesterday (January 11) a short position on the EURNZD “The longer term Weekly and Monthly charts are in strong downtrends, so this position is very much with the trend.  The entry point at 1.5070 was a confluence of the 38.2 Fibonacci level that did not break yesterday, the 20 DMA that was breached this morning and the 50 DMA zone.  The Parabolic SAR has remained negative since January 3, the RSI is 47 and falling and the MACD remains weak.  Target 1 also coincides with the 14 DATR and the 23.6 Fibonacci level at 1.4948.  Target 2 is below the lower daily Bollinger band and sits with the Weekly lower Bollinger band at 1.4860”. The pair quickly moved to target 1 earlier today for a gain of 122 pips.

Finally, the rally in the USD yesterday, before the Trump press conference and the subsequent sell off of the USD saw my short GBPUSD trade from Monday (January 9), achieve target 1 at 1.2080 for a gain of 100 pips.   “The move down to below 1.2200 has triggered a SHORT position entry at 1.2180 with Target 1 at the 14 DATR and the recent lows of 1.2080, but with the Bollinger Band low at 1.2060, Target 2 is at the psychological 1.2000”.


/ has had a good start to 2017 with all four trades achieving at least target 1 for a total net gain of 646 pips.


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Stuart Cowell

Market Analyst


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