Aussie trying to find support against Kiwi
The Australian dollar initially pulled back a bit during the trading session on Tuesday but continues to find a bit of support in the form of the 1.04 level. The New Zealand dollar has been very strong as of late but is starting to show signs of exhaustion against other currencies while the Australian dollar is trying to form a bit of a base against the US dollar. Will all of those things come together for a bounce here? At this point it does look like we are in fact trying to form a “higher low” from a longer-term standpoint although the 50 day EMA has recently broken below the 200 day EMA. That being said though, that does tend to be a bit of a late signal, and this chart is a perfect example of that. If you are wanting to sell this currency pair, doing it just a couple of days ago would have been very late, despite the fact that is when the crossover happened.
At this point, it looks as if the hammer trying to form during the trading session on Tuesday is a good sign, and if the market can break above the 1.05 handle, it’s very likely that we will continue to fulfill the overall consolidation with an upward slant that we have seen over the last several months. That could leave this pair to reach towards the 1.08 level but keep in mind that the AUD/NZD pair does tend to be rather choppy and slow-moving most of the time. This is more or less thought of as an investment than some type of short-term trade. Ultimately, if we were to break down below the 1.03 level, then the market is likely to rollover and continue going much lower. At this point though, it does look like the buyers are trying to make a bit of a stand.
At this point, it looks as if the hammer trying to form during the trading session on Tuesday is a good sign, and if the market can break above the 1.05 handle, it’s very likely that we will continue to fulfill the overall consolidation with an upward slant that we have seen over the last several months. That could leave this pair to reach towards the 1.08 level but keep in mind that the AUD/NZD pair does tend to be rather choppy and slow-moving most of the time. This is more or less thought of as an investment than some type of short-term trade. Ultimately, if we were to break down below the 1.03 level, then the market is likely to rollover and continue going much lower. At this point though, it does look like the buyers are trying to make a bit of a stand.