AUD/NZD: Near-term exhaustion, upward path to slow – DBS Bank

The AUD/NZD cross has moved higher from a November 1.0280 low. The pair is now veering towards an overbought reading with the prior bullish momentum waning. Further upticks face 1.0864, the 76.4% Fibonacci retracement marker, Benjamin Wong, Strategists at DBS bank report. 

Momentum is on the wane

“AUD/NZD’s progression should now start to slow as the cross nears a dropped-down resistance line around 1.0799. Further up lies 1.0864 – the 76.4% Fibonacci retracement marker of the 1.1044-1.0280 range grip.” 

“Taking the distance where the cross had travelled from 1.0280-1.0612 and transposing that higher by an equal length, the cross is likely to struggle around 1.0858. Hence, mid-1.08 warrants attention.”

“The weekly Ichimoku chart has the cross slightly perching above its cloud resistance of 1.0755. The technical indicator however is now flashing an overbought condition.”