AUD/NZD continues to work its way lower since peaking back in October, and the price sequence is helping lend towards carving out a broad head-and-shoulders pattern.One could also view the price action since last fall as a descending wedge.The exceptions to this rule are SAR and JOD, where the spot date for Thursday's trades is taken to be Tuesday, effectively making a three-day weekend (Friday, Saturday, Sunday) for value date purposes.Some banks, particularly Arab banks when trading with their customers, use split settlement for USD/Arab currency pairs, with USD settling on the Friday or Monday, and the Arab currency settling on the Sunday.In either case, the outcome could soon become decidedly bearish if support breaks.The neckline of the pattern comes across as a trend-line from September, but just below it is a solid area of support dating back to July (the 200-day MA also runs in the vicinity).There is a trend-line extending higher from April 2015 which arrives ahead of this target, so this will be viewed as the more important level of support.
The most popular of the three value dates is T 1, which could therefore be considered as the spot date.
Market convention in the interbank market for Arab currencies is that the spot date for Wednesday's trades is taken to be Monday.
For AED, BHD, EGP, KWD, OMR and QAR, the spot date for Thursday's trades is also taken to be Monday, because this still leaves two working days for each currency in the pair (i.e.
In addition to the spot date, there are many standard tenors (periods) on which it is possible to settle an FX trade.
These include 1 month, tomorrow (tom) and 6 months.