The AUD/NZD popped over the 1.35 level, and retested an area just north of that number on Friday. The candle that was printed was a hammer, and it is on strong support – a classic break and retest of an important area.
Longs can put there stops below the 1.35 area, and let this trade run towards 1.38 and then probably the psychologically important area of 1.40 as well. Any break below 1.35 would signal weakness, but there are so many support areas below there – shorting isn’t advised.
