For the first time since last August, our trend following signals for AUDNZD have turned bullish.
Last year’s peak in August was signals by a Bearish Dark Cloud cover pattern on weekly candle charts. That bearish pattern was followed, 2 weeks later with a negative ‘dead’ cross of the 21 week moving average and a matching cross in our RSI signals.
AUDNZD then saw steady losses, below the important average in both spot AUDNZD and the RSI until last week. During that time the cross spend a lot of that time tracking the lower end of a declining Keltner channel and with profit taking attempts being limited by the averages.
To this year’s low AUDNZD fell by six big figures but the cross also saw an aggressive spike in January 3 big figures lower than that and below parity.
But the last 2 weeks have seen a bounce that is proving to be more than profit taking for AUDNZD.
Gains during the last week of March were enough to give a positive ‘golden’ cross of the RSI moving average, with last week’s strong gains confirming that signal with a move through the spot average line.
These moves have turned our signals for sentiment to outright bullish and we currently target January’s 1.0671 high point for AUDNZD with a break through that point then focusing on 1.0742 or even 1.0852.
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