AUD/NZD: Potential building for another push to test 1.12 – Westpac

Sandeep Kanihama FXStreet Contributor

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”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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