Have spoken about this pair last week as well, and we had a major pullback due to the RBNZ rate decision. This was to be expected as the breakout had no pullback, it was straight green candles in a row.
Now, after the pullback, we seem to be making our higher low swing. However, according to market theory and structure, the higher low swing is not confirmed until we get a higher high, or a break and close on the daily above this level highlighted. Also confirming a head and shoulders pattern with a double bottom.
we are looking at the 1.0660 zone for take profit.
The only reservation I have is the People's Bank of China has their interest rate decision tomorrow. Will not be surprised if we get a rate cut due to the shut down of the Chinese economy due to the coronavirus. China has already lowered short term rates and are pumping in billions to prop up the stock market and businesses. Chinese data and economic events affect the Aussie dollar a lot due to the trade between the both nations.
Now, after the pullback, we seem to be making our higher low swing. However, according to market theory and structure, the higher low swing is not confirmed until we get a higher high, or a break and close on the daily above this level highlighted. Also confirming a head and shoulders pattern with a double bottom.
we are looking at the 1.0660 zone for take profit.
The only reservation I have is the People's Bank of China has their interest rate decision tomorrow. Will not be surprised if we get a rate cut due to the shut down of the Chinese economy due to the coronavirus. China has already lowered short term rates and are pumping in billions to prop up the stock market and businesses. Chinese data and economic events affect the Aussie dollar a lot due to the trade between the both nations.