15 Jan 2014
AUD/NZD falls below 1.0700 to fresh 5-year lows
FXstreet.com (Córdoba) - The AUD/NZD suffered the worst daily decline in a month and tumbled to 1.0665 hitting levels not seen since October 2008. It was the second decline in a row in line with a major downtrend coming from 2011 highs.
On Monday the pair was testing a resistance at 1.0860 and weakened during the American session falling at a moderate pace. The decline continued in the first hours of Tuesday and surprisingly accelerated during the European session, when the AUD/NZD fell a hundred pips, breaking short-term supports like 1.0730 and 1.0700.
The Aussie bottomed at 1.0665 and bounce slightly to the upside late in New York. Currently is consolidating barely below 1.0700, after dropping 165 pips in the last two days.
Levels to watch for the AUD/NZD
To the downside support levels might lie at 1.0665 (January 14 low), 1.0630 (2008 low) and 1.0600 (psychological level). On the other side, resistance levels could be located at 1.0730 (November 18 , January 9 low), 1.0755 and 1.0790.
On Monday the pair was testing a resistance at 1.0860 and weakened during the American session falling at a moderate pace. The decline continued in the first hours of Tuesday and surprisingly accelerated during the European session, when the AUD/NZD fell a hundred pips, breaking short-term supports like 1.0730 and 1.0700.
The Aussie bottomed at 1.0665 and bounce slightly to the upside late in New York. Currently is consolidating barely below 1.0700, after dropping 165 pips in the last two days.
Levels to watch for the AUD/NZD
To the downside support levels might lie at 1.0665 (January 14 low), 1.0630 (2008 low) and 1.0600 (psychological level). On the other side, resistance levels could be located at 1.0730 (November 18 , January 9 low), 1.0755 and 1.0790.