Hot Features
Premium
Register for real-time alerts, custom portfolio, and market movers
AUDNZD: BUY
The recent outlook was bearish, but since the middle of February 2013, the price found it difficult to go lower than the accumulation territory at 1.2150. As the price moved sideways while the bear and the bull engaged in some cut-throat struggle, the buying pressure increased. On February 20, 2013, the price crossed the EMA period 56 to the upside (closing above it), as the RSI period 14 went above the level 50. After this, the bullish breakout lost some steam, yet the price could not go below the EMA 56, which itself was acting as a kind of demand level. In this market, no further significant bearish run was allowed: the price broke upwards in a nice northward bias. There has been a Bullish Signal Confirmation Pattern on the AUDNZD chart. This means that the Aussie currently has more stamina than the Kiwi. Accumulation and distribution territories matter in the trader’s mindset. The logic here is so conspicuous and reliable because it is related to the flow of the price and price action: taking advantage of a newly established bias. The price could go on towards the distribution territory at 1.2985 eventually, whereas, a pullback that holds out long enough until the price reaches the accumulation territory at 1.2150, would render this expected scenario useless.
Chart: 4 hour
