Aussie dollar and the AUD/NZD the ones to watch

AUD/NZD - 4 hour chart

AUD/NZD – 4 hour chart

Here in UK election day is almost here & we can expect reactions as soon as the exit polls start posting as well as the actual results. Heaven only knows what is going to happen. So far GBP has been fairly well behaved – moving more as a result of USD & EUR.

Meanwhile in Asia – AUD has employment data to contend with. On 4hr CSI we have seen the AUD pull back & is also showing the NZD as hugely oversold, but as mentioned many times before a currency can stay stubbornly over stretched for a considerable time. And in the case of the Kiwi where it is still falling on the weekly and daily charts it is likely to stay down on the 4 hr chart. Of course AUD/USD is the one to watch, but expect to see moves in the AUD/NZD cross with some interesting volume/price action now developing in the slower timeframes, and with the NZD ( the white line ) deep in the oversold region on the currency strength indicator to the left of the chart. The VPOC volume point of control has yet to reflect a possible change in sentiment but should the current congestion phase of price action begin to build with the associated build in volume, then this will duly move to reflect the reversal from bullish to bearish in this timeframe.