AUD/NZD: Long term base still favoured pattern, despite persistent upside failures - Westpac

Although risk of yet another failure cannot be pushed aside, a more convincing basing structure has developed below the pivotal 1.0550 level for AUD/NZD cross, according to Tim Riddell, Research Analyst at Westpac.

Key Quotes

“Daily momentum has been decidedly supportive of the recent push through 1.0550 (now key support) with potential for a flip towards at least the 1.0730-65 area”

“Weekly

• The break higher has occurred with a much more favourable aligning of weekly momentum. This could trigger a more substantial push towards at least 1.0900-25
• The persistent gyration between 1.03 and1.10 is indicative of a broader base, but also means that current gains could merely reaffirm this range if rebounds falter”

“Monthly

• Monthly momentum is relatively neutral, but is positioned such that it could add t a favourable alignment of momentum across time-scales
• Overlapping price action since 2H 2015 is still seen as a frustrating and volatile long term base. The favoured potential for a dynamic uptrend is still to develop”