AUDNZD – Key Level Update
25th August 2016
…I wrote on these pages a few weeks ago that AUDNZD was testing, and likely to break, a key Marabuzo line.
At the time, as you can see from the chart below, that line, 1.0503, held on a weekly closing basis. This led to a firm bounce which saw the 21 week average tested (our definition of trend in this case), But over the subsequent 3 weeks that average held the AUDNZD topside. It’s also interesting to note that the bounce from July’s low failed near the bottom of the weekly Ichimoku Cloud pattern.
Last week’s close was marginally below the Marabuzo line and selling has extended, modestly, this week – a fact that we feel emphasises a renewal of the negative trend for AUDNZD.
The RSI indicator did trade above its moving average but was unconfirmed of course and is now back below.
It is only Thursday and but an expected close below 1.0503 will accelerate the downside in our view with the 1.0312/53 area the initial and crucial objective.
