Yesterday, I published an AUD/NZD trade idea to look for shorts heading into the Australian GDP number.
The daily chart shows an obvious higher time frame resistance level and as mentioned above, price action up into this zone looks very choppy. You can see the way that price has spiked in and out of the 25 pip zone that I’ve drawn.
With AUD/NZD sitting at higher time frame resistance and the general downward trend we’ve seen in the last few GDP numbers, I was obviously playing for a miss on expectations and a drop in price on the back of that.
The print came in WELL above expectation and the Aussie ripped higher on the back of it.
Interestingly, price is still being capped by the top of the daily resistance zone higlighted in yesterday’s original trade idea.
This level will continue to be the key as to which way we look to trade the pair.
If price stays under it, then we will look for shorts (or stay in shorts if your stop was still above this higher time frame level).
If price moves above it, then we will look for longs on any short term pullbacks.