{"id":109567,"date":"2017-07-24T09:27:30","date_gmt":"2017-07-24T13:27:30","guid":{"rendered":"http:\/\/countingpips.com\/?p=109567"},"modified":"2017-07-24T07:28:47","modified_gmt":"2017-07-24T11:28:47","slug":"short-term-trading-idea-fx-audnzd-trading-sideways-cross-in-a-narrowing-formation","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/07\/short-term-trading-idea-fx-audnzd-trading-sideways-cross-in-a-narrowing-formation\/","title":{"rendered":"Short-term trading idea FX AUD\/NZD \u2013 trading sideways: cross in a narrowing formation"},"content":{"rendered":"
July 24, 2017<\/div>
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By Gabriel Ojimadu, Alpari<\/strong><\/p>\n

Trading opportunities on the currency pair:\u00a0<\/em><\/strong>A pin bar has formed on the weekly timeframe. Given that the pair has long been trading within a certain range for a while, it might not work out. Pin bars often fail to fully form, so let\u2019s keep an eye on the current bar.<\/em><\/p>\n

I\u2019m predicting the price will restore to 1.0725 (50% of the drop from 1.0746 to 1.0609) with a subsequent breakout to 1.0550. I\u2019m inclined to say that the pin bar won\u2019t complete its formation. There\u2019s a reasonably strong support at 1.0550. From here, I\u2019m expecting to see a rebound to 1.0868.<\/em><\/p>\n

Background<\/em><\/strong><\/p>\n

The last idea on the AUD\/NZD currency pair was published last year on the 31st<\/sup>\u00a0of October. Back then, the Aussie was trading at 1.0591 NZD. Then, a double top model formed beneath the resistance zone from 1.0744 to 1.0771. Due to this, when 1.0588 was broken, I was expecting to see the rate drop to 1.0479 (161.8%). Sellers hit their target within 4 days. By the 10th<\/sup>\u00a0of November 2016, the AUD\/NZD had slid to 1.0364.<\/p>\n

Current situation<\/em><\/strong><\/p>

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So, what\u2019s so interesting about the current situation on the cross? The price on the weekly timeframe is right in the middle of a narrowing formation. The weekly candlestick closed with a pin bar; a bearish body and long wick. The probability of it working out is around 65-70%. If the price exits upwards in the next couple of weeks, there\u2019ll be an increased chance of the Aussie falling to 1.0375.<\/p>\n

While the price is trading within a narrowing wedge, you can both buy and sell the Aussie on the generated signals while the price is trading within its current range. If we look at the pair from a mid-term perspective, we need to wait for the price to exit the range. According to the weekly indicators, the scales are tipping in buyers\u2019 favour.<\/p>\n

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Weekly chart. Source: TradingView<\/p>\n

Source: “Short-term trading idea FX AUD\/NZD \u2013 trading sideways: cross in a narrowing formation<\/a>“<\/div>\n
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By Gabriel Ojimadu, Alpari Trading opportunities on the currency pair:\u00a0A pin bar has formed on the weekly timeframe. Given that the pair has long been trading within a certain range for a while, it might not work out. Pin bars often fail to fully form, so let\u2019s keep an eye on the current bar. I\u2019m […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-109567","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/109567","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=109567"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/109567\/revisions"}],"predecessor-version":[{"id":109569,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/109567\/revisions\/109569"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=109567"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=109567"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=109567"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}