6 Feb 2014
AUD/NZD testing 1.09 handle
FXStreet (Guatemala) - AUD/NZD has rocketed from 1.0860 through to test the 1.09 handle.
AUD/NZD has benefited from the positive data which came in the form an upbeat retail sales number and a surprise in the trade surplus. Strategists at TD Securities noted that we caught the low and reversal in AUD/NZD last week but underestimated the strength of the rebound. “The AUD rally extended sharply through the latter part of the week and now looks poised to extend further”. They explained previously that gains through trend channel resistance and especially through initial retracement resistance at 1.0751, which coincided with the December and early January lows, suggest the low 1.09 area is reachable near-term (coincides with December and early January highs).
Bullish AUD/NZD patterns
The strategists at TD Securities went onto to explain, “Weekly patterns are positive also; net gains this week have formed the third leg of a bullish morning star reversal signal which supports the outlook for more gains moving forward. Look for support now at 107.25/50”.
AUD/NZD has benefited from the positive data which came in the form an upbeat retail sales number and a surprise in the trade surplus. Strategists at TD Securities noted that we caught the low and reversal in AUD/NZD last week but underestimated the strength of the rebound. “The AUD rally extended sharply through the latter part of the week and now looks poised to extend further”. They explained previously that gains through trend channel resistance and especially through initial retracement resistance at 1.0751, which coincided with the December and early January lows, suggest the low 1.09 area is reachable near-term (coincides with December and early January highs).
Bullish AUD/NZD patterns
The strategists at TD Securities went onto to explain, “Weekly patterns are positive also; net gains this week have formed the third leg of a bullish morning star reversal signal which supports the outlook for more gains moving forward. Look for support now at 107.25/50”.