AUDNZD, Daily             

On Monday I looked ahead for a falling AUDNZD rate as news data and momentum continued to weigh on the pair. I wrote “A clear, breach and break of 1.0450 level on the Daily time frame will generate a SELL position with Target 1 1.0340 and Target 2 at 1.0173”.

In a highly volatile week my entry at 1.0450 was triggered on Tuesday (July 5th) and Target 1 at 1.0340 was reached this morning (July 8^th). The Kiwi has had a strong week and continues today, Target 2 at 1.0173 remains the next level.

The GBPJPY post from Tuesday suggested that at 133.00 the pair could easily fall to 131.50 which it duly did in the following hours. As pressure on sterling continues and the flight to quality and safe havens rolls on Target 2 at 128.5 and 125.60 are still in play. As I stated on Tuesday “as we move lower these targets become more difficult to achieve, however, momentum is to the downside and although technically oversold, never underestimate the power of fear and greed”. 

Janne Muta

Chief Market Analyst

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Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

AUDNZD, Daily            

Currencies have seen little direction for the most part as we begin the week, though the Australian dollar has been volatile following the inconclusive general election results over the weekend. AUDUSD initially dove, but subsequently managed to rebound to a 10-day peak at 0.7522, despite all three of the main credit ratings responding with warnings about the implications of the election to the government budget.

The AUD and the NZD have been remarkable robust recently and it led me to review the Analysis from June 15^th when I was looking for a retrace before taking a SELL position.  I wrote then that…”Technically, the Daily down trend remains is intact, a potential SELL area appears where the channel, 20 DMA and 23.6 FIB retrace levels coincide between 1.0580 – 1.0620. This would generate Target 1 – 1.0486, Target 2 1.0340 and Target 3 1.0173.  A break above 1.0750 would be of interest for BUY positions.”

The retrace never occurred and the pair continued to consolidate sideways, the threat of a hung parliament following the Australian general election over the weekend cased the pair to fall to a low of 1.0378 before recovering to north of 1.0450 today.

The pair remains bearish trading close to the trend line on “Brexit Friday” and again last Thursday, also rejecting the 20 DMA on both occasions too. A clear breach and break of the 1.0450 level on the Daily time frame will generate a SELL position with Target 1  1.0340 and Target 2 at 1.0173.

Tomorrow (Tuesday) sees Retail Sales from Australia and the RBA decision on interest rates. This will clearly have an impact on the pair as further easing from the RBA cannot be discounted although this is unlikely tomorrow, due in part to the current political uncertainty. Further out (over the next few months) and parity between the two cannot be discounted, much will be dependent on inflation (CPI) in both Australia and New Zealand.   

Janne Muta

Chief Market Analyst

If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:

http://www.topforexbrokerscomparison.com

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

 

AUDNZD, Daily        

Away from the Brexit woes and the impending FOMC announcement and press conference later today my attention has turned to the some of the other crosses. The antipodean pair has been in a strong down trend on the Daily time frame since the end of April.

Today sees the GDT (Global Diary Trade) data released and it is a key for the New Zealand economy, tomorrow (Thursday) sees the announcement of GDP also from New Zealand. The NZD is having another strong day today too. Also tomorrow there is Inflation and Employment and Unemployment numbers from Australia.

Technically, the Daily down trend remains is intact, a potential SELL area appears where the channel, 20 DMA and 23.6 FIB retrace levels coincide between 1.0580 – 1.0620. This would generate Target 1 – 1.0486, Target 2 1.0340 and Target 3 1.0173.  A break above 1.0750 would be of interest for BUY positions.

Janne Muta

Chief Market Analyst

If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:

http://www.topforexbrokerscomparison.com

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.