Tim Riddell, Research Analyst at Westpac, explains that the daily momentum swung to supportive on the break above 1.0765 for AUD/NZD cross and rebounds may be corrective but a sound push above 1.0875 opens a retest of 1.1020.
Key Quotes
“The rejection of the spike below 1.07 suggests that the potential for a broader uptrend remains intact. The 1.0750-75 area should provide solid support”
“Weekly
- Although weekly momentum remains relatively high, the pullback to neutral levels in RSI’s suggest that interim corrections may have run their course
- The reversal of the spike to 1.0645-50 suggests a retest of trend resistance in the low 1.10’s within a possible move to 1.1150 with potential to extend towards 1.15”
“Monthly
- Monthly momentum is now showing a more pronounced positive turn. 2015’s 1.0200 low appears to be a structural base.
- The overlapping price action seen since 2H 2015 still suggests that a volatile but long term base has been forming in advance of a potentially dynamic uptrend”
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