AUDNZD – Positive sentiment targets 1.1090
1st February 2016
…Negative RSI signals in July last year were confirmed with a ‘dead’ cross of the AUDNZD spot through the 21 week moving average in Septmber.
That bearish tone resulted in 2 downside attempts culminating ( in October & December) in lows near a 62% correction to the April – June improvement.
November’s bounce lacked the momentum to turn RSI signals positive but last week’s strong gains – a 2nd week in a row after 3 weeks of indecisive price action – have given bullish signals with ‘golden’ crosses in both spot and RSI.
This changes our assessment of AUDNZD sentiment to positive fo the first time since last September and we look for demand to take this cross to a test of November’s peak. A move through that point would then end a sequence of lower highs and lows and given studies a longer term upward bias, opening up 1.1350/1432 area.
