Good day traders! I have been following the AUD/NZD since February and still think that a large expanding triangle is underway with the final E-wave nearing completion.
The purple horizontal lines on the weekly chart above were used to find the center balance point of the proposed expanding triangle and then projected upward and downward.
The D-wave failed to close below the lower dashed horizontal line and price is now testing the upper dashed horizontal line for the 3rd time.
The AUD/NZD still has the potential to head higher towards the 1.1065 level before the entire proposed pattern ends, but how quick it will get there is anyone’s guess.
I will not be surprised if price starts ranging for a while before we get that final pop into a possible high.
Should this analysis prove to be correct, then the AUD/NZD could be in for a nasty decline at a later stage but it would be wise to be patient and first wait for some sort of reversal confirmation before taking any shorts.
More updates to follow.
Bias: Bullish over the short-term. Bearish after pattern ends.
Potential Targets: 1.1065
Until next time, have a great day and stay safe!