Watch How AUD/NZD Responds to Support on Pullback
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Right now, there isn’t a lot of great opportunities in the majors with the dollar extended at the moment, which has focus shifted elsewhere in the crosses. AUD/NZD has rallied sharply since bottoming off a trend-line dating back to 2015 and may soon offer another long opportunity.
The current decline is putting pressure on a crossroad of support. Confluence between price support back to July, the trend-line off the April low, and a backside retest of the broken trend-line off the October high, makes the area in the low-10800s an important one.
However, until we see a bullish rejection off support buying into the current decline isn’t that appealing. But if we see a strong turnaround today or in the next day or so, then with validation of support we could see the recent weakness as a chance to join in on an extended move higher towards resistance over 11000.
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AUD/NZD Daily Chart (looking for a bullish rejection at support)
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.