AUDNZDs incredible rally reaches 1.1300

24 June, 2015

AUDNZD’s comeback story is that of an underdog currency fighting against what was once a frontrunner. Not long ago the Australia dollar came under extreme pressure due to a progressive lowering of interest rates in Australia, while the NZ dollar was benefiting from the belief that the RBNZ may continue to raise interest rates. This was before the RBNZ did an about-face and began cutting interest rates in an effort to spur domestic demand, resulting in a widespread sell-off of the NZ dollar and pushing AUDNZD back from the precipice that is parity.

Last week we highlighted that momentum in the pair still looked strong in the medium-term, and sure enough price has since rallied to an important resistance zone around 1.1300. If AUDNZD’s recent ability to smash through resistance zone is any indication, price may not have much trouble with 1.1300. However, the pair may have overextended its supply lines and bulls may have to regroup before launching another attack.

In the event that 1.1300 is broken, we’re keeping an eye on 1.1600 and then road looks somewhat clear to the big 1.2000. On the downside, there’s some room for a retracement towards 1.1000 and our overall long-term technical bias remains higher above this level. There’s some bearish divergence between price and RSI on an hourly chart which indicates that the rally may have run out of steam in near-term.


Source link  
Markets turn focus towards Trump address to Congress

On the evening of Tuesday, February 28th, US President Trump is slated to give a major address to a joint session of Congress in lieu of the usual State of the Union address...

FOMC meeting minutes signal rate hike fairly soon – dollar unimpressed

The minutes from the most recent FOMC meeting three weeks ago – the first such meeting since Donald Trump’s presidential inauguration – were released on Wednesday afternoon...

Crude oil look set to resume bullish trend

Oil prices have been coiling for several weeks now with both contracts spending most of their time in a tight four dollar range...


US stocks could rise 6-7% further before potential crash

The US stock markets hit repeated new record highs last week. The positive sentiment has continued at the start of this week, with Asian and European markets drifting higher in an otherwise quiet day. US index futures point to further gains at the open later on...

Fed gives little indication of interest rate trajectory

The Federal Open Market Committee (FOMC) meeting has come and gone, and little has changed in the financial markets as a direct consequence. In unanimously deciding to keep interest rates unchanged, as widely expected...

Surging equities at risk ahead of earnings season

While earnings season has started on a very positive footing, however, banks and other financial companies were already expected to shine more than others due to rising interest rate expectations. As non-financial companies begin to report in the coming weeks...


Gold rebound heading for major resistance

For more than two weeks, the price of gold has been in a strong rebound from its late-December bottom around the $1125 level. This rebound follows a sustained drop in price that began from the July highs around $1375 and followed-through to the December lows...

Crude oil at higher plateau ahead of US inventory data

Crude oil prices have recently been lifted to year-to-date highs on a successful agreement to cut oil production and control supply among major OPEC and non-OPEC oil producers...

Gold rebounds off key level ahead of busy week

As we reported the possibility on Friday of last week, gold did indeed fall further lower this week. The rising dollar, yields and US equity prices all weighed on the appeal of the buck-denominated, noninterest-bearing and perceived safe-haven precious metal...

  


Share: