This pair went up for more than 300 pips yesterday, which was a result of New Zealand cutting rates.


Having in mind that master pair, AUDUSD is also in up move I think that possibilities are now higher that we will break upper channel level this time. So this is option (1) I drawn on the chart. Stochastics is turning up from oversold territory and there is also slight divergence. If we will get good reversal signal there at trend line and horizontal resistance at 1.1274, then option (2) could come into play.

There is no major AU or NZ news on Monday.

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