Strategy 12 February 2014

AUD/NZD – Daily Chart

Dips lower is viewed as corrective, maintain bullish bias

AUD/NZD’s reversal off the major support area at 1.0501/1.0434, made up of the 1995 and 2005 lows, has so far taken it to its current February high at 1.0948.

Buying dips down towards the 1.0731 December low, now support, should be considered by those who have missed the recent rally since we believe that further upside is in store for the months to come.

Further support can be seen around the 1.0707 January 20 high. We will keep our bullish view while AUD/NZD trades above the January low at 1.0493 on a daily closing basis.

Once the 1.0948 current February high has been bettered, the 2013-14 resistance line at 1.1096 and then the August and September lows at 1.1157/99 will be targeted. There the currency pair is likely to struggle, though.

To know more click here PDF