Trading news

AUDNZD - New Zealand Dollar At Continued Risk Of Weakness

AUDNZD recently failed around an important resistance area, but it looks like buyers might succeed in taking the pair higher in the short term.

Technical Analysis
AUDNZD climbed towards the 38.2% Fibonacci retracement level of the last drop from the 1.1017 high to 1.0759 low earlier during the Asian session, but failed to overtake the same. There is a contracting triangle formed on the 4 hour chart, which is acting as a catalyst for the pair. The AUDNZD pair recently failed to break the triangle resistance trend line. However, it looks like the pair has formed a solid base around the last low of 1.0759. There is even a double bottom pattern formed on the daily chart, which might take the pair higher in the coming sessions. If the pair settles above the resistance area and triangle, then it could trade towards the 100 simple moving average (SMA) – 4H, which is coinciding with the 50% fib retracement level. Any further gains should be dependent on the incoming economic data for both Australian and New Zealand.

If the AUDNZD pair moves lower one more time, then the last low of 1.1079 might be retested. A break below the same might invalidate the bullish pattern and call for more losses moving ahead.

New Zealand Electronic Card Retail Sales
Later during the next Asian session, the New Zealand Electronic Card Retail Sales report will be reported by Statistics New Zealand. The forecast is of 0.2% increase in November 2014, compared with the preceding month. If the outcome misses the forecast, then the New Zealand dollar might come under pressure in the near term.

Monday, 08 Dec, 2014 / 10:58