AUD/NZD rallied on Tuesday breaking above the 1.0800 zone, which was marked as a resistance by the high of April 26th. The move confirmed a forthcoming higher high on the 4-hour chart, and given that the rate is already above the prior downside resistance line drawn from the peak of March 29th, this may have signaled a short-term trend bullish reversal.
If the bulls are willing to stay in the driver’s seat, we may see the rate rising towards the 1.0842 area, defined as a resistance by the high of April 16th. They may decide to take a break after testing that zone, thereby allowing the rate to correct lower, but they could regain control from near 1.0800 and perhaps push the action above 1.0842 this time around. Something like that may pave the way towards the high of April 6th, at 1.0875.
Shifting attention to our short-term oscillators, we see that the RSI just crossed above 70, and continues to point up, while the MACD lies above both its zero and trigger lines, pointing north as well. Both indicators detect strong upside speed and support the notion for further advances in this exchange rate.
Now, in order to start examining whether the outlook has turned back bearish, we would like to see a dip below 1.0740. This may also take the pair back below the pre-mentioned downside line and may initially pave the way towards the low of April 29th, at 1.0705. A break below that level would confirm a forthcoming lower low and may set the stage for the 1.0670 area, marked as a support by an inside swing low formed on March 1st.
-637557239755861917.png)
JFDBANK.com - One-stop Multi-asset Experience for Trading and Investment Services
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 clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.