Range trade on AUDNZD?
AUDNZD is looking like a good range trade between the bounds of 1.05 and 1.04. The 1.05 area is also where the 21-day EMA is sitting providing further resistance to price rallies. Negative divergence has appeared on the RSI which would have stemmed selling pressure around 1.04. The head and shoulders pattern predicts a move to 1.0250. To get here we’d have to take out the 1.03 horizontal support first. Both countries are in lockdown, Australia mid-cycle and NZ early-cycle. If one nation manages the growth of covid better than the other we could see a more sustained directional move. If price breaches the upside range resistance then 1.054/5 comes into play. On the downside, a breach through range support at 1.04 would open up 1.03.
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