AUDNZD Analysis. And the best currency in the region is…

In this piece we will look for the strongest currency in the Antipodes, so let the battle between the AUD and NZD begin. In my opinion and I will tell You that at the very beginning, Australia should win this, at least in the mid-term and to back this up, I have the following arguments:

First of all and actually that is the most important reason, we are bouncing from the blue line. That does not sound so serious, right? Oh but it is, the blue line is the lower line of the triangle, which connects higher lows since March 2015! We bounce from this line, creating a smaller triangle or if you will, inverse head and shoulders pattern. Both formations will be active when the price will break the upper pink line – that will be the ultimate trigger here. As long as we stay inside, you can have hope but the signal is not there.

Well, long story short, the price closing a day above the pink line will tell you to buy. On the other hand, price closing below the blue line will do the opposite.

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis