13 May 2015
AUD/NZD: A fade on rallies at EMA5 on 4hr?
FXStreet (Guatemala) - AUD/NZD is currently trading at 1.0806 with a high of 1.0911 and a low of 1.0775.
AUD/NZD has taken out the ascending support and fell through and below the 1.08 handle. This is a significant fall although demand here is picking up the pieces as the cross manages a score back on to the 1.08 handle, but in to fading territory perhaps?
The Kiwi has staged a very large recovery in a volatile session post the RBNZ's Financial stability Report, where the bird was initially offered from 0.7359 to 0.7317 very quickly on familiar jawboning of the currency. However, the price snapped back within the hour and presses on with a bid tone across the board.
The knee jerk reaction was thus unjustified by a lack of fundamentals pertaining to a weaker currency overall. The cross now may well target 1.0760 on the downside on additional supply from above the 1.08 handle and EMA5 on the 4hr offering a potential sell signal at 1.0820.
AUD/NZD has taken out the ascending support and fell through and below the 1.08 handle. This is a significant fall although demand here is picking up the pieces as the cross manages a score back on to the 1.08 handle, but in to fading territory perhaps?
The Kiwi has staged a very large recovery in a volatile session post the RBNZ's Financial stability Report, where the bird was initially offered from 0.7359 to 0.7317 very quickly on familiar jawboning of the currency. However, the price snapped back within the hour and presses on with a bid tone across the board.
The knee jerk reaction was thus unjustified by a lack of fundamentals pertaining to a weaker currency overall. The cross now may well target 1.0760 on the downside on additional supply from above the 1.08 handle and EMA5 on the 4hr offering a potential sell signal at 1.0820.