Currency Pair: AUD/NZD
Chart: 60 Min Charts
Short-Term Bias: Bearish
The AUDNZD moved initially higher to reach 1.1261 after the initial analysis, but has moved lower to fall below the 120 SMA. Despite the downturn in the pair, the aussie-kiwi continues to hold above 1.1034 (21.4% Fib level of 1.0640-1.2500), but the pair looks to be running out of steam, and we may see the pair dip below its current level by the end of the trading session. If the pair gains enough momentum to break to the downside, I anticipate the pair to retest yesterday’s low of 1.0876, and expect the downward momentum to lead the pair lower over the following week. However, the fundamental event risks scheduled for the next 24 hours may call for a change in our outlook.
Increased volatility throughout the month of October has led the AUDNZD to break below key support levels, but the pair has bounced higher after falling to a low of 1.0641 on 10/10 and may offer profitable opportunities for forex traders. The aussie-kiwi had a great start this week as it reached a high of 1.1474, but the lack of momentum to break above 1.15 suggests that the pair may move to the downside over the following week. For the next few hours, I do not expect the pair to move much higher, and anticipate the pair to hold within its current range. Be sure to check out other Technical Reports from DailyFX for additional information on the major currency pairs.
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