12 Jun 2015
AUD/NZD holds onto gains after RBNZ-propelled rally
FXStreet (Córdoba) - The AUD/NZD has soared up to 1.1078, a fresh 7-month high during the past Asian session, as following the surprise rate cut from the RBNZ late Wednesday, Australian employment data at the beginning of Thursday fueled the rally. The pair added over 350 pips in a few hours, spending the rest of the day consolidating above the 1.1000 figure.
AUD/NZD technical perspective
“The 1 hour chart shows that the consolidative stage has given time to technical indicators to stabilize, with the 20 SMA now a few pips below the current level, the Momentum indicator steady in neutral territory, and the RSI indicator still hovering in overbought territory”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the 20 SMA heads higher well below the current level, whilst the technical indicators hold in overbought territory, still far from suggesting a retracement. Should the price remain above the 1.1000 figure, there's room for additional advances, with the market now eyeing an advance beyond the 1.1100 level”.
As for technical levels, Bednarik locates support levels at 1.1000, 1.0960 and 1.0910, while she places resistances at 1.1080, 1.1125 and 1.1150.
AUD/NZD technical perspective
“The 1 hour chart shows that the consolidative stage has given time to technical indicators to stabilize, with the 20 SMA now a few pips below the current level, the Momentum indicator steady in neutral territory, and the RSI indicator still hovering in overbought territory”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the 20 SMA heads higher well below the current level, whilst the technical indicators hold in overbought territory, still far from suggesting a retracement. Should the price remain above the 1.1000 figure, there's room for additional advances, with the market now eyeing an advance beyond the 1.1100 level”.
As for technical levels, Bednarik locates support levels at 1.1000, 1.0960 and 1.0910, while she places resistances at 1.1080, 1.1125 and 1.1150.