AUD/NZD Teases Pivotal Level
Matt Simpson March 18, 2019 9:36 AM
Last Wednesday we outlined the potential for AUD/NZD to mean revert towards 1.0370 resistance. Having hit that key level today in Asia, we take another look at this pivotal level.
The daily chart remains in a downtrend with a series of lower lows and highs. Furthermore, its retracement has failed to re-test the 20-day eMA, underscoring weakness to it ‘rebound’. Granted, its not the most aggressive of trends, yet the structure remains clear.
If New York is to close around current levels, a potential hammer could materialise which could suggest a swing high was in place. Failing that, prices could go on to form a bearish flag. It’s usually best to allow a little breathing room around support and resistance levels, so we’ve pencilled in a resistance zone around 1.0370/90 (near the 20-day eMA).
Whilst we remain beneath the resistance zone, the bias remains for move a towards 1.0238 support. Whereas a clear break back above this area would put it on the backburner as risks point towards a deeper correction.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.