The AUDNZD remains range-bound between 1.1980 and 1.2510, and may offer profitable opportunities for forex traders.
Currency Pair: AUD/NZD
Short-Term Bias: Short
Chart: 15 Min Charts
Analysis Update
The AUDNZD continues to hold around 1.2264 (61.8% Fib level of 1.1950-1.2510), but the flattening in the 120 SMA has led us to hold our bearish outlook for the pair. We expect price action to break to the downside over the next few trading sessions, but may hold within its current range between 1.1980 and 1.2510 in the weeks ahead. However, the underlying weakness in the aussie may carry the pair to break below its current range in the near future. However, the fundamental event risks scheduled for the next 24 hours may call for a change in our outlook.
Analysis
After congesting near 1.2009 (21.4% Fib level of 1.1950-1.2510) earlier this week, the AUDNZD surged higher to hold above 1.2264 (61.8% Fib level of 1.1950-1.2510). A bearish divergence in the RSI has emerged over the past two days, and we anticipate the pair to move lower over the next few trading sessions. If the pair is able to gain enough downward momentum, we may see the aussie-kiwi break below its current congestion level near 1.2009 (21.4% Fib level of 1.1950-1.2510), and could work its way down to test 1.1775 for near-term support.
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