The AUD/NZD is currently testing the long term ascending trend-line. Our estimate is that the pair will indeed break down, in which case we should have 2 reasonable alternatives:
(1) short the breakout of the trend-line, aiming initially towards the 1.09600 lows.
(2) wait for price to pull back towards the descending trend-line and short the pair there
We think both options are positive in expected value terms, they are really a matter of style, the more aggressive traders should opt for the (1), while the more conservative can opt for (2).
(1) short the breakout of the trend-line, aiming initially towards the 1.09600 lows.
(2) wait for price to pull back towards the descending trend-line and short the pair there
We think both options are positive in expected value terms, they are really a matter of style, the more aggressive traders should opt for the (1), while the more conservative can opt for (2).