IN our free forex signals pair today, we have the AUD/NZD instrument. We have the entry price, stop and take profits levels for our buy order.
Learn2trade in-house trader Olimpiu Tuns provides a video explaining the buy setup for our AUDNZD signal.
The pair has been pressured lower since the middle of last month. That’s partly because of the Covid situation. The Aussie dollar has been struggling of late as the Covid pandemic makes itself felt yet again. Lockdowns are back in New South Wales and elsewhere, so that the majority of the country’s population is now under new restrictions to control the spread of infections.
Analysts at Westpac Banking Corp think that the pair could have lower to fall, perhaps coming to rest around the 1.06 level this month. However, by year-end the economists expect AUDNZD to be priced at 1.09 by end-2021.
Australia v China tension continues
“Near-term risks remain negative, with RBA vs RBNZ trajectory, and trade and political tensions between Australia and China, weighing on the cross and dominating Australian commodity outperformance.”
“There’s potential for a decline towards 1.06 during the month ahead.”
The analysts see strength ahead for the Aussie v the NZ dollar on the basis of the Chinese economic resurgence benefiting Australia more than it will the New Zealand economy.
“By year-end, though, we expect to see it higher at 1.09+. Elevated global risk sentiment (amid vaccine deployment) and solid growth in China should benefit the AUD more than the NZD.”
AUDNZD technical analysis – short-term buy opportunity at 1.05-1.07
However, after retesting the upper middle line of the pitchfork the pair may be looking at an upcoming bullish reversal at around the 1.07 to 1.05 level and is currently located above the 50% retracement level. So for those looking to do some forex trading we see a new swing higher on the 4-hour chart.
On the 1-hour chart there’s support at 50% retracement and at the mid line of the ascending pitchfork. As long as the price stays above the lower mid line of the ascending pitchfork it could see an upside movement over the short term.
By the way, if you want to get a machine to do your trading for you, then you might be interested in our guides to Forex Robots.
For more details on the technical analysis behind today’s signal, watch the video below:
Free forex signals – Buy AUDNZD
Instrument: AUD/NZD
Order: BUY STOP
Entry price: 1.0725
Stop Loss: 1.0697
TP1: 1.0776
Recommended Risk: 1%
Risk / Reward Ratio: 1:1.7
Signal validity period: Good until cancelled
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