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FxWirePro: AUD/NZD bullish setup intact, go long on sustained 1.0821 break

Interest rate differentials and the divergences between RBA and RBNZ likely to push AUD/NZD higher.

  • RBNZ is expected to cut interest rates in the December meeting while the RBA have signalled that they are on hold for the time being
     
  • Momentum studies are positive, pair could test 1.0921 50% of Sep/Nov fall, close above 1.0762 (200 DMA) & sustained 1.0821 38.2% Fibo break is bullish
     
  • However, momentum has slowed, pair was rejected at 55 EMA by 1.088 in yesterday's trade
     
  • The pair is currently trading at 1.0828 with a high of 1.0852 and a low of 1.0817 on the day, Stochs are in overbought territory, so caution advised
     
  • 1.0762 (200 DMA) is strong support on the downside, while resistance is seen at 1.0878 (55 EMA) 

Recommendation: Good to go Long on breaks above 1.0821, SL: 1.0770, TP: 1.0920 

Resistance Levels:

R1: 1.0878 (55 EMA) 
R2: 1.0882 (Nov 4 highs)
R3: 1.0921 (50% Fibo of Sep/Nov fall)

Support Levels:

S1: 1.0817 (session low) 
S2: 1.0773 (Nov 4 th low) 
S3: 1.0762 (200 DMA) 

  • Market Data
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