AUD/NZD Consolidates Below 1.0700; Can the Bulls Overcome that Barrier?
|AUD/NZD surged yesterday, breaking above the resistance (now turned into support) barrier of 1.0670. That said, following the break, the rate has been trading in a consolidative manner between that level and the key resistance zone of 1.0700. Following the upside exit from a falling wedge formation on the 13th of April, the price structure has been of higher peaks and higher troughs and thus, we see a positive near-term outlook for now.
If the bulls prove strong enough to drive the battle above 1.0700, we may see them aiming for our next resistance of 1.0720. Another break above that hurdle could set the stage for more bullish extensions, perhaps towards the 1.0760 zone, defined by the peak of the 22nd of March.
Turning attention to our short-term oscillators, we see that the RSI, already above 50, has turned up again. The MACD however, although positive, stands near its trigger line and points sideways. What’s more, both the indicators lie below their respective short-term downside resistance lines, which mark the negative divergence between them and the price action. Having these momentum signs in mind, we remain careful that a corrective setback may come into play before the next positive leg, perhaps for another test near 1.0670.
On the downside, we would like to see a decisive dip below 1.0655 before we start examining whether the bears have gained the upper hand. Such a dip could initially see scope for downside extensions towards our next key support territory of 1.0620.
Are you interested in institutional-grade research? Sign up for our Weekly Strategic Report HERE – it’s free!
Article written by Charalambos Pissouros, Senior Market Analyst at JFD Brokers
You want more? Visit our Research Website HERE, or subscribe to our JFD YouTube Channel HERE. To contact Charalambos send an email to c.pissouros@jfdbrokers.com
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.