Overnight rebound in crude supported commodity currencies such as the Australian dollar on Wednesday.
AUD/NZD trades a tight Asian range - opened the Asian session +0.2% at 1.0614, after a fresh 1.0568 low in London yesterday.
5, 10 & 20 DMAs trend south - bias still lower, current setup could see a test of the 1.0497 October trend low, which is a potential reversal zone.
Stochs remain in oversold territory with a crossover, on dailies has also bounced-off 30 levels and is currently at 37 and points north.
We would wait for further confirmation to go long. Watchout for the following to confirm bias:
- Decisive close above
- Stochs rollover from oversold territory
- line crossover on signal line
On confirmation, we would expect completion of the , will go long to target 1.1086 levels.