30 Jan 2015
AUD/NZD fails at 1.0760/65, bulls still in control
FXStreet (Bali) - AUD/NZD was rejected off 1.0760/65 sticky resistance, presently at 1.0685/90, with persistent selling in the AUD/USD dragging down AUD across the board, and as the depreciation of the NZD/USD moderated somewhat along US hours, with most of the RBNZ-induced bear extension in the last Asian and European sessions.
Sean Callow, FX Strategist at Westpac explained that "we view risks on the multi-week/month outlook as tilted towards 1.10. This would be more of a correction of excessive kiwi strength around the turn of the year rather than a particularly bullish AUD view."
Meanwhile, David Coloretti, FX Technical Analyst at Westpac, notes: "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."
Sean Callow, FX Strategist at Westpac explained that "we view risks on the multi-week/month outlook as tilted towards 1.10. This would be more of a correction of excessive kiwi strength around the turn of the year rather than a particularly bullish AUD view."
Meanwhile, David Coloretti, FX Technical Analyst at Westpac, notes: "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."