24 Oct 2013
Flash: Long AUD/NZD, target 1.1750 - ANZ
FXstreet.com (Barcelona) - Tim Riddell, Head of Global Markets Research, Asia, at ANZ, explains below the reasons why long AUD/NZD makes technical sense. In order to reflect this bullish conviction, the bank has initiated a long position at 1.1465 with a stop below 1.1390 and a target of 1.1750.
Key Quotes
"A change in trend has been evolving since the initial spike to test 1.1200 on 1 August. The gyrations seen since the test of 1.1200 (hit 1.1155-60) on 23 September could still be forming a frustrating corrective wedge, but today’s close above 1.1400 area (in Asian hours at least) is indicative of a larger squeeze developing."
"The daily chart below highlights the turn and then rise in daily momentum indicators. Weekly indicators (not shown) have displayed an even more pronounced positive turn and so signal a change in trend."
"Price action is therefore developing into a potential larger squeeze higher in AUD with the standard (38.2%) retracement of the slide since March acting as an attraction point at 1.1765. A slide back below 1.1400 would undermine this growing potential for a retracement squeeze towards 1.1765."
Key Quotes
"A change in trend has been evolving since the initial spike to test 1.1200 on 1 August. The gyrations seen since the test of 1.1200 (hit 1.1155-60) on 23 September could still be forming a frustrating corrective wedge, but today’s close above 1.1400 area (in Asian hours at least) is indicative of a larger squeeze developing."
"The daily chart below highlights the turn and then rise in daily momentum indicators. Weekly indicators (not shown) have displayed an even more pronounced positive turn and so signal a change in trend."
"Price action is therefore developing into a potential larger squeeze higher in AUD with the standard (38.2%) retracement of the slide since March acting as an attraction point at 1.1765. A slide back below 1.1400 would undermine this growing potential for a retracement squeeze towards 1.1765."