AUDNZD – Sentiment turning Bullish?
11th May 2018
Our medium term Trend Table turned bearish for AUDNZD in the second week of this year. But are we now seeing a reversal of that trend?
Prices fell by almost 5 big figures after a negative cross by spot AUDNZD through the 21 week moving average confirmed a similar, earlier breach of the corresponding RSI average. But since April’s 9 month low AUDNZD has been bought solidly higher. 3 weeks of gains in a row with this week’s likely to post a 4th.
Importantly this week saw an initial, strong, negative reaction to gains that has found even stronger fresh investor demand for the cross. These gains have taken spot AUDNZD above its relevant moving average and the RSI through it’s average line.
These breaks need to be confirmed by Friday’s close, and the proximity of the bottom of the weekly Ichimoku Cloud is a concern. Nonetheless we’re expecting a close above the key 1.0758 which would then open up potential to 1.0951 and 1.1048.
We will confirm this change in sentiment from bearish to positive in our Trend Table next week.
