25 Oct 2013
AUD/NZD faces critical test at 1.1550
FXstreet.com (Barcelona) - AUD/NZD resurgence off 1.1225 continues to expand further north this week, with today's bullish move testing a new 6-week high at 1.1550, an area which aligns with a strong technical resistance.
The one street rise in the AUD/NZD has been relentless in the past 24 hours, only seeing a slight pullback to retest 1.15 broken-resistance-turned-support before Asia players resumed the upside. It is worth noting that AUD/NZD will close the week recording gains for the 5th consecutive week, an occurrence that one has to go as far back as February this year to seen it replicated.
In terms of next key technical levels, 1.1550/60 resistance is critical, as not only represents resistance aligning with Oct 11 high, but also is the area where the 20-EMA on the weekly chart crosses. A break above it should warrant further upside for the pair, aiming at 1.16/1610 (origin of sept 5, july 24 liquidations) ahead of 1.1650 (sept 4 high). Topside failure through 1.1550 should see retracements being met with buying interest at 1.15, with break lower bringing 1.1435 into play.
The one street rise in the AUD/NZD has been relentless in the past 24 hours, only seeing a slight pullback to retest 1.15 broken-resistance-turned-support before Asia players resumed the upside. It is worth noting that AUD/NZD will close the week recording gains for the 5th consecutive week, an occurrence that one has to go as far back as February this year to seen it replicated.
In terms of next key technical levels, 1.1550/60 resistance is critical, as not only represents resistance aligning with Oct 11 high, but also is the area where the 20-EMA on the weekly chart crosses. A break above it should warrant further upside for the pair, aiming at 1.16/1610 (origin of sept 5, july 24 liquidations) ahead of 1.1650 (sept 4 high). Topside failure through 1.1550 should see retracements being met with buying interest at 1.15, with break lower bringing 1.1435 into play.