Without wishing to spark a war of words, the AUD/NZD chart appears to be turning. Clearly weighed down by a lack of Bledisloe Cup success, the Aussie has slid against the Kiwi for nine months. However, with recent China data showing a pick up in growth and a clearer political landscape in Australia, there is a case to buy AUD/NZD.
This is not a classic Bollinger Band buy - the bands are widening to reflect increased recent volatility. Nonetheless, it shows recent price moves are well away from the averages. Support at 1.1194 offers a tight stop loss, especially as a reversion to the mean (middle green line) would take the pair over 1.1400.