AUD/NZD: Range Reversal Update
Dailyfx | Sep 02, 2014 12:53PM ET
- AUD/NZD Stays Range Bound
- R3 Resistance Sits at 1.1147
- Market Breakout Signaled Below 1.1114
(Created using FXCM’s Marketscope 2.0 charts)
The AUD/NZD has opened the trading day quietly, while continuing to move in a defined trading range into the U.S trading session. Price began trading by dropping to range support at 1.1125 before moving back to resistance levels. Range resistance is currently found at 1.1147, near the R3 camarilla pivot. Again after the first test of resistance price remained range bound moving back to identified support. At present, price is again attempting to hold under resistance and clear the pairs 22 pip range. So far price has traversed the range three times today, and range reversal traders will look for these conditions to continue in the absences of a breakout.
Traders should always be mindful of a market breakout, which would signal an end to ranging markets. A move below the S4 camarilla pivot would indicate the market is attempting to break to a lower low, counter to the current daily trend. Conversely a break above the R4 support at 1.1158 would signal a strong continuation on the creation of a higher high. In either breakout scenario, traders may select to end any range based positions, while looking to take orders with the markets influenced direction.
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---Written by Walker England, Trading Instructor
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