10 Dec 2013
AUD/NZD touches down at ST downside target at 1.0950; modest bounce to 1.1098 possible
FXstreet.com (Barcelona) - After a dreadful month and a half, the AUD/NZD cross finally reached a Fibonacci-generated downside projection at 1.0950 and has thus far held its ground there. What will the future bring?
AUD/NZD traders will be eyeing Chinese data due out later for directional guidance
The AUD/NZD is reacting short-term (selling off in last 45 minutes) to the Aussie and New Zealand data that has already been released. Later in the session, China will be releasing their Industrial Production, Retail Sales and Urban Investment data which could push this pair around a bit. All that may be noise in the big picture, though, as the technicals seem to be pointing to a modest oversold relief bounce in the short-term.
Technical outlook for AUD/NZD
Technicians say the AUD/NZD may be attempting to find a third wave low near 1.0950 and could see a fourth wave correction higher with upside targets of 1.1098 and 1.1190 – the first two Fibonacci retracement targets following the recent decline. Below 1.0950, the next downside target is likely to be 1.0803.
AUD/NZD traders will be eyeing Chinese data due out later for directional guidance
The AUD/NZD is reacting short-term (selling off in last 45 minutes) to the Aussie and New Zealand data that has already been released. Later in the session, China will be releasing their Industrial Production, Retail Sales and Urban Investment data which could push this pair around a bit. All that may be noise in the big picture, though, as the technicals seem to be pointing to a modest oversold relief bounce in the short-term.
Technical outlook for AUD/NZD
Technicians say the AUD/NZD may be attempting to find a third wave low near 1.0950 and could see a fourth wave correction higher with upside targets of 1.1098 and 1.1190 – the first two Fibonacci retracement targets following the recent decline. Below 1.0950, the next downside target is likely to be 1.0803.