AUD/NZD bulls en route to 1.0800
|- The RBNZ meeting is scheduled on Wednesday at 20.00 GMT.
- The AUD/NZD soars more than 100 pips in less than 48 hours.
The AUD/NZD is trading at around 1.0734 up 0.37% on Wednesday so far as the Aussie is on a tear against the Kiwi. On Tuesday, the RBA minutes gave little new information and the Australian House Price Index came better than anticipated while later on Wednesday the RBNZ will release its Interest Rate Decision at 20.00 GMT, exactly two hours after the widely awaited FOMC meeting at 18.00 GMT. The RBNZ is expected to stay on hold.
AUD/NZD Daily chart
On Tuesday the bears fell into a bear trap below 1.0650 after which the market gained more than a 100 pips in less than 48 hours. Bulls seem pretty enthusiast to say the least as their eyes are now likely set on the 1.0800 figure which was the top of the trading range of the last month. The 1.0700 figure should now provide support as it was a previous demand zone.
AUD/NZD 4-hour chart
The bulls are now testing the 200-period simple moving average at the 1.0740 level. The next scaling points in sight are situated at 1.0760, 1.0780 and 1.080 which are all separated by a 20-pip gap and are essentially previous swing highs. Support is seen at the 1.0700 previous demand zone and 1.0650 cyclical low. Both RSI and MACD are seen as constructive so far.
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