AUD/NZD V Shaped Reversal Turning Into Ascending Scallop
With a giant inverted head and shoulders pattern on the AN pair on Daily/Weekly TF, this bullish move is strengthened by fundamental analysis too. Given President Elect Trump has plans to rebuild the USA, this had lead to bullish moves on base metals and this is good for the AUD. The NZ economy has been quite strong of late, but rate cuts have not been ruled out for the mainly Agri-economy, and this is largely contingent on Dairy prices.
As we could have seen on our Session Recap webinar yesterday, the price behaved exactly as planned, rejecting from 1.0460. Technically, we can spot a V shaped reversal pattern that is turning into ascending scallop, opening the door for more gains. 4h close above 1.0517 is needed and above 1.0530 preferred for next target 1.0570. Substantial momentum above 1.0570 will target 1.0640. Have in mind that ATR on AUD/NZD is not very high and it might take some time for the price to reach the target. POC is 1.0485-1.0500 (ATR pivot, X cross ™, bullish order block) and we might see rejections should price reach the POC zone.
By Nenad Kerkez | Admiral Markets
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