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18 Dec 2013
AUD/NZD deeply oversold and rallying on RBA’s Stevens’ comments; resistance 1.0796
FXstreet.com (Barcelona) - AUD/NZD traders are reacting bullishly to the Stevens comments and now await more Aussie and New Zealand data due out over the next hour.
AUD/NZD still in a macro downtrend despite today’s bounce
The AUD/NZD has been in a strong downtrend since late October and is likely to stay in that trend unless and until a string of bullish data out of Australia or bearish data out of New Zealand forces traders to change their stance. The only data point due out for the remainder of Wednesday is the New Zealand Business Confidence.
Technical outlook for AUD/NZD
Technicians say the AUD/NZD broke below the 161.8% Fibonacci price projection line at 1.0950 last week. The ultimate downside target now becomes 1.0560 – the 261.8% projection line. Resistance at which technicians say the cross can be sold starts at the horizontal line / “correction resistance” at 1.0796 and is backed up by the Monday high at 1.0852.
AUD/NZD still in a macro downtrend despite today’s bounce
The AUD/NZD has been in a strong downtrend since late October and is likely to stay in that trend unless and until a string of bullish data out of Australia or bearish data out of New Zealand forces traders to change their stance. The only data point due out for the remainder of Wednesday is the New Zealand Business Confidence.
Technical outlook for AUD/NZD
Technicians say the AUD/NZD broke below the 161.8% Fibonacci price projection line at 1.0950 last week. The ultimate downside target now becomes 1.0560 – the 261.8% projection line. Resistance at which technicians say the cross can be sold starts at the horizontal line / “correction resistance” at 1.0796 and is backed up by the Monday high at 1.0852.