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AUD/NZD Short-Term Technical Outlook (update)
Friday, 26 September 2008 10:52:53 GMT  |  David Song, Currency Analyst
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At the beginning of the week, the AUD/NZD bounced back to hit an intraday high of 1.2292, but is steadily losing momentum and should fall back to the downside over the following week.

Currency Pair: AUD/NZD
Short-Term Bias: Short
Chart: 60 Min Charts

Analysis Update

AUDNZD2_9-26

Price action for the AUDNZD has moved in our favor over the last few hours of trading, and has fallen lower to hit an intraday low of 1.2048. After approaching the lower end of the channel, the pair has bounced back to the upside, but looks to be finding resistance near 1.2127 (38.2% Fib level of 1.1805-1.2648). We expect the downward momentum to lead the pair lower over the following week, and may see the pair fall below the downward trending channel by the end of the day. However, the fundamental event risks scheduled for the next 24 hours may call for a change in our outlook.

 

Analysis

AUDNZD1_9-26

At the beginning of the week, the AUD/NZD bounced back to hit an intraday high of 1.2292, but is steadily losing momentum and should fall back to the downside over the following week. After failing to break above 1.2300 this week, we expect the pair to end the day near (or below) the intraday low of 1.2098, and anticipate price action to fall through 1.2050 over the coming week. We anticipate the underlying downtrend to hold in the near-term, and expect the pair to test the 1.1985 (Fib level of 1.1805-1.2648) level for support on its way to the downside. 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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