AUD/NZD – Break above 1.0770 would underpin bullish momentum
|Natixis FX Technical Analysis note sees a potential for rally to 1.0844-1.0866 if the AUD/NZD pair breaks above the critical trend line resistance around 1.0770-1.0776.
Key points
The increase in the daily volatility, the buy signals on the daily indicators and the fact that the weekly indicators have turned around should support the pair in the coming sessions.
We expect a rally to 1.0727 (monthly Bollinger moving average) ahead of the resistances at 1.0770-1.0776 (declining trendline). The clearance of these last levels would underpin bullish momentum, paving the way to 1.0844-1.0866 (Fibonacci extension), to 1.0903 (and 1.0997 (50-month moving average).
The supports are at 1.0590-1.0605, at 1.0543 at 1.0481-1.05, at 1.0392 and at 1.0320.
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