AUDNZD Potential Breakout to 5 Year Lows | Sept 30th
AUDNZD – Ahead of the RBA, Looking Bearish
Five hours and counting to the RBA rate decision, and the AUD is looking quite weak vs. its antipodean partner the Kiwi. The pair has virtually formed a triple touch off the key level at 1.1200, with each subsequent bounce getting weaker. Yesterday the pair formed an inverted pin bar, which is a failed attempt to rally (albeit an attempt nonetheless). The last rejection was off the 20ema which hemmed the upside, which is interesting being so close to a key level.
This suggests sellers are willing to sell close to a major support level, meaning they likely plan to attack and break it. If within the next 24-48 hours, there is no meaningful bounce off the 1.12 major level, then I suspect a break to the downside is on deck, which would put pressure on 1.1000 which is ~200 pips below, so tremendous profit potential on a breakout retest setup.
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