Trading at the Bollinger Bands Reversal!

For the first time since June of the past year, the pair of an Australian and a New Zealander is approaching to 1.08.

It is enough to scroll the chart back to notice that this level historically is a strong support or resistance.

This means that a rapid breakdown of this level will likely not happen.

And near such resistance, a Bollinger reversal signal is gradually materializing.

Any more, quotes of the pair will touch the upper Bollinger band.

And the AD indicator with which a reversal signal works well offers sales.

Macrostatistics of countries is almost identical which means that the beginning of the flat within the range between 1.063 and 1.08 is probable.

An additional impetus to decrease of the AUDNZD currency pair can be given by updating of Australian Labor Market statistics on Thursday, 17 February. According to forecasts, the employment rate of the country will decrease and the unemployment rate will be unchanged.

So, the plan for trading:

1.   Wait for a touch of the upper Bollinger band (it will be better if the Close of the daily candlestick turned to be above the upper Bollinger band).

2.   At the opening of the next day(0:00 Moscow time), we open a short position for the AUDNZD currency pair.

3.   We put Take Profit near 1.063 and Stop Loss within 1.08050 and 1.08150.

Another option of closing a position: leave the market at the end of the 15th trading day after the entry. So, if the signal finishes its materialization today, then at the end trading of 9 March.

Warning!

Trading at financial markets involves a high level of risk and it can be followed by a loss of investment capital.

The MarketCheese team is not responsible for a possible loss of Your investment funds.