21 Aug 2013
Flash: AUD/NZD downtrend remains dominant – ANZ
FXstreet.com (New York) - Tim Riddell, Head of Global Markets Research at ANZ analyzes the short-term outlook of the AUD/NZD.
Key quotes
“The extended downtrend may be prone to retracement rebounds, but the persistent failure to regain 1.1600 leaves the cross gyrating within a 1.1200-1.1600 range at best.”
“Despite bias to consolidate, any near term acceleration below 1.1250 could force a return to the extended downtrend and force a full test of the long term rising support level in the 1.10 area. An interim rebound above 1.1335 is needed to support further consolidation.”
“Once again the apparently positive profile of weekly momentum indicators is failing to provide support for a sustained rebound. Despite an initial sharp spike above 1.15, the persistent slide back into the 1.12’s will increase concerns over a full retest of the lows seen in the mid-2000’s in the 1.0430-1.0500 area. Once again, a sustained move above 1.1600 is needed to reverse the current downtrend.”
Key quotes
“The extended downtrend may be prone to retracement rebounds, but the persistent failure to regain 1.1600 leaves the cross gyrating within a 1.1200-1.1600 range at best.”
“Despite bias to consolidate, any near term acceleration below 1.1250 could force a return to the extended downtrend and force a full test of the long term rising support level in the 1.10 area. An interim rebound above 1.1335 is needed to support further consolidation.”
“Once again the apparently positive profile of weekly momentum indicators is failing to provide support for a sustained rebound. Despite an initial sharp spike above 1.15, the persistent slide back into the 1.12’s will increase concerns over a full retest of the lows seen in the mid-2000’s in the 1.0430-1.0500 area. Once again, a sustained move above 1.1600 is needed to reverse the current downtrend.”