Tim Riddell, Research Analyst at Westpac, suggests that although in “overbought” areas, daily indicators are not turning, yet. This suggests that the down-channel break has further to run and should at least test 1.0980-90 for AUD/NZD cross.
Key Quotes
“As long as dips are contained to the 1.0830-50 area, the rally should continue. There is even potential for upside extensions if dips now hold above 1.0900”
“Weekly
- Weekly momentum is now strongly AUD supportive. 1.0950-80 has been pivotal of late, but the build up of weekly indicator support suggests that it will be broken
- The style of the rally from 1.0485-90 is decidedly dynamic and is more akin the to rally seen in 2H’17, suggesting contained dips and a push to 1.1100-50”
“Monthly
- Monthly momentum remains neutral. Slow Stochastics are now less directional whilst RSI’s are becoming more supportive, but remain within their neutral zones
- Despite frustrating and overlapping price action seen over recent years, a long term base appears to have formed and potential for a sound uptrend persists”
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