AUDNZD – Buyers getting on Top?
8th March 2016
..Are buyers now getting on top in AUDNZD?
The last 6 months have seen this cross in a very broad consolidation, oscillating around the important 21 week moving average. The downside has been constrained by a 62% correction point to the 14 big figure rise posting between April and June last year.
Importantly the lows near that point, most markedly last October and this January have been close to the lower end of a Keltner channel that has reflected the range trading.
But although November’s 1.1090 high for AUDNZD needs to be exceeded to get excited about the upside the reason we are now cautiously bullish is the RSI indicator.
That tool posted a negative trigger last August and, barring an unconfirmed upside break in January, has been supportive of a bearish bias since. This has been altered by last week’s rise which confirmed the previous week’s positive cross of the RSI through it’s moving average.
Further confirmation has been seen in the form of AUDNZD demand this week. Of course, it won’t be smooth trading and, as said above, November’s high needs to break for a strong trend to develop. Nonetheless we’re looking towards that point and then 1.1230 in the coming weeks.
Only a confirmed downside break of the RSI average will negate this positive tone.
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