AUDNZD’s overall price range has been extending since 2018. Downward reversals usually get nearly clear signals from multiple indicators. First RSI reverses from the overbought zone then sometime later its distant cousin RMI indicator crosses its own 10-day moving to the downside when RMI still over 70. This strategy signaled 5 times in the last 2 years and it worked 4 times. The fifth one did not work but later formed a double top with the same signal so we can even count that too.
Another good signal came from the 50-day moving average and its z-score. Reversal from the over 2-standard deviation zones creates 6 signals with a %66,6 success rate. One of the two incorrect signals was the same one cause double top, if we count that too rate jumps to %83,3.
So, why are we blubbering about these indicator signals? Well, all three of them are nearing critical zones. RMI is over 80 already and its 10-day moving average is fast approaching. RSI is flirting with 70, the overbought line, and Z-Score is at 1.73 nearing the 2 standard deviation line. When 3 of these indicators signaled in the last 2 years, the success rate was %75 and AUDNZD fell with an average of %6. If the price continues to surge in the coming days indicators will get ready to shoot their sell signals. But until then the price may continue its surge within the bullish trend channel to at least %61.8 and %76.4 Fibonacci levels of the last down move.
