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 [email protected]
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Group, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Group analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD Group prohibits the duplication or publication without explicit approval.
72,99% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure: https://www.jfdbank.com/en/legal/risk-disclosure
Recommended Content
Editors’ Picks
EUR/USD extends gains above 1.0700, focus on key US data
EUR/USD meets fresh demand and rises toward 1.0750 in the European session on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
USD/JPY keeps pushing higher, eyes 156.00 ahead of US GDP data
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, recapturing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming intervention risks. The focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold closes below key $2,318 support, US GDP holds the key
Gold price is breathing a sigh of relief early Thursday after testing offers near $2,315 once again. Broad risk-aversion seems to be helping Gold find a floor, as traders refrain from placing any fresh directional bets on the bright metal ahead of the preliminary reading of the US first-quarter GDP due later on Thursday.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price.
US Q1 GDP Preview: Economic growth set to remain firm in, albeit easing from Q4
The United States Gross Domestic Product (GDP) is seen expanding at an annualized rate of 2.5% in Q1. The current resilience of the US economy bolsters the case for a soft landing.