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AUD/NZD Short-Term Technical Outlook (update)
Friday, 19 September 2008 10:58:46 GMT  |  David Song, Currency Analyst
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After hitting an intraday low of 1.1805 yesterday, the AUDNZD has bounced higher to hold above 1.2000, and has triggered an oversold RSI signal in the process.

Currency Pair: AUD/NZD
Short-Term Bias: Short
Chart: 15 Min Charts

Analysis Update

AUDNZD2_9-19

After hitting an intraday high of 1.2052 earlier in today's session, the AUDNZD has come under heavy selling pressures to move back below 1.1975. The pair looks to be finding support near 1.1945 (21.4% Fib level of 1.1795-1.2515), and may hold within range between 1.1945 (21.4% Fib level of 1.1795-1.2515) and 1.2068 (38.2% Fib level of 1.1795-1.2515) for the rest of the trading session. However, the underlying downtrend has favored a bearish outlook for the pair, and may break below its current range to fall below the 120 SMA line. However, the fundamental event risks scheduled for the next 24 hours may call for a change in our outlook.

 

Analysis

AUDNZD1_9-19

After hitting an intraday low of 1.1805 yesterday, the AUDNZD has bounced higher to hold above 1.2000, and has triggered an oversold RSI signal in the process. As a result, price action has broken above the 120 SMA and the downward trending channel, and may hold in a tight range for the rest of the trading session.

The Aussie has strengthened considerable against the Kiwi over the last few hours, but looks to be finding resistance near 1.2068 (38.2% Fib level of 1.1795-1.2515). We expect price action to hold within range between 1.1945 (21.4% Fib level of 1.1795-1.2515) and 1.2068 (38.2% Fib level of 1.1795-1.2515) over the next few hours, but the underlying downward pressures should lead the pair lower over the next few days. Be sure to check out Jamie’s Technical Outlook for additional information on the major currency pairs.

To contact the author of this article, please email: dsong@fxcm.com

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