AUD/NZD surpasses recent bullish focal points, from 26th Feb Aussie dollar against Kiwi dollar has been recovering its price losses, bulls started pushing hard vigorously from the lows of 1.0670 to the current 1.1273 (almost about 5.64%), in between it has cleared resistances at 1.0942 and 1.1053 levels.
Both technical and fundamental indicators are signalling buying sentiments.
On daily chart, today it has formed a big real body bull candle soon after RBNZ's surprising rate cuts by 25 bps, well, this bull run may prolong in short term but long term we seek proper clarity in this short term bull trend.
The leading oscillators have reached overbought zones, RSI evidences the positive convergence with the every price bounces that signifies the strength in bullish momentum, (currently, RSI trending at 76.1052).
While, no there is no trace of selling indications even if stochastic curve reaches above 80 levels which is overbought zone. %K crossover even above 80s would mean that bulls seem to be in total control over rallies in order to bounce above current levels.
More importantly, daily prices have spiked well above 7 & 21DMA curves that would mean that the upswings may extend further.
However, long term investors may have to wait for better clarity as you can see the stiff resistance at 1.1290 and 1.1416 levels on monthly charts.
As and when it hits these levels prices began tumbling with massive volumes evidences supply zone is intensive at this juncture.
Well, having said that we wrap up with concluding note, short term bulls can speculate this pair whereas long term investors have to wait for safe play.
