Currency Pair: AUD/NZD
Short-Term Bias: Long
Chart: 15 Min Charts
After finding near-term support around 1.2203 (21.4% Fib level), price action has broken to the upside, and may offer profitable opportunities for forex traders.
Analysis Update
The AUD/NZD has come under heavy selling pressure within the past few hours, triggering an oversold RSI signal in the process. Current price action has not moved in our favor, and has broken out of its range to the downside.
After finding resistance near, 1.2296 (61.8% Fib level), the 120 SMA has leveled out, and looks to be holding the downward trend. We expect the price action to move back into the channel over the next few hours, and may see the pair make a break to the upside. However, the fundamental event risks scheduled for the next 24 hours may call for a change in our outlook.
Analysis
The AUD/NZD remains range-bound between 1.2385 and 1.2153, and may offer profitable opportunities for forex traders. After finding near-term support around 1.2203 (21.4% Fib level), price action has broken to the upside to hold above the channel.
Price action continues to move to the upside, and continue to move away from the channel as the RSI looks to be changing course. A bullish divergence in the RSI has led us to hold a positive outlook for the aussie, and we expect the pair to test 1.2385 for resistance over the next few trading session. If the aussie is able to gain enough momentum, the pair may have the potential to break out of its current range to trade above 1.2400. Be sure to check out Jamie’s Technical Outlook for additional information on the major currency pairs.
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