29 Jan 2015
AUD/NZD: Second attempt to carve out major bottom - Westpac
FXStreet (Bali) - David Coloretti, FX Technical Analyst at Westpac, notes that AUDNZD looks to be on a 2nd attempt to print a major bottom around 1.05, which tends to be more successful than the first failed recovery seen during H2 2014.
Key Quotes
"AUDNZD looks to be playing out a LT historical relationship, whereby the 2nd attempt at a major bottom around 1.05 is more successful than the first."
"Since making a new low in January (below the 2014 low), MT momentum has returned to an upward bias."
"The success of this upswing, in turning into a sustainable uptrend, will be largely gauged by its ability to overcome some significant obstacles. The most significant of these is the pivotal 50 week MA at 1.0857. A break of this level will target the top of the weekly cloud at 1.1077. Above 1.1077 the scene is set for a sustainable rally of some significance."
Key Quotes
"AUDNZD looks to be playing out a LT historical relationship, whereby the 2nd attempt at a major bottom around 1.05 is more successful than the first."
"Since making a new low in January (below the 2014 low), MT momentum has returned to an upward bias."
"The success of this upswing, in turning into a sustainable uptrend, will be largely gauged by its ability to overcome some significant obstacles. The most significant of these is the pivotal 50 week MA at 1.0857. A break of this level will target the top of the weekly cloud at 1.1077. Above 1.1077 the scene is set for a sustainable rally of some significance."