I don’t trade the AUD/NZD but I do keep an eye on this pair given where I live. I’ve previously had this pair breaking up through one Bear trend line and trading within a wonky ‘Inverse H&S’. I’m seeing a new trend line develop here though that has superseded the old one.
AUD/NZD monthly: this was the Bear trend line I’ve had in place for the last few months. A wonky ‘Inverse H&S’ can also be seen and I say ‘wonky’ because the neck line isn’t that clear. I’ve adjusted this neck line a few times but have settled on the horizontal 1.45 level for the time being. Note how this 1.45 level runs into the bottom of the monthly Cloud. I’d expect a lot of choppy action around this level:
Recent price action has helped to develop another Bear trend line here though and this is illustrated below. This Bear trend line is more to my liking as well as it connects the March 2011 high and has more ‘touches’ than the previous trend line. Thus, this is the one to watch from now on:
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