AUD/NZD: Sound push above 1.0865 opens a retest of 1.1020 - Westpac

In view of Tim Riddell, Research Analyst at Westpac, daily momentum has swung to supportive on the break above 1.0755 for AUD/NZD cross and rebounds may be corrective but a sound push above 1.0865 opens a retest of 1.1020.

Key Quotes

“The unsettling spike to 1.0610 did not extend and, price action below 1.0700 appears to have been rejected. Downside concerns would return below 1.0710.”

“Weekly

• The roll lower in weekly momentum continues to warn of further corrective pullbacks, but RSI’s are at neutral levels: corrections may have run their course
• A breach of declining resistance in the 1.1000-20 area should allow for more dynamic moves to 1.1150 and re-instate potential for extensions 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.”