28 Jul 2014
AUD/NZD: Short opportunity near term?
FXStreet (Bali) - AUD/NZD is trading in consolidation mode just below the 1.10 handle, following a daily bearish doji candle on Friday, after 9 days of unperturbed gains for the pair.
Peter Fell, Analyst at FXBeat, notes: "The world seems to have turned bearish Kiwi, to my mind nothing much has changed, rates are on pause, but the next move is higher, intervention is likely just to be more jawboning. Sovereign demand is not going to disappear, the global hunt for yield will continue."
Peter adds: "That being said, a fairly low risk trade to buy NZD would be against the Aussie, recent forays above 1.10 have proved exhaustive, the last couple of days has seen a possible double top at 1.1016, if that is the case, there is scope for the cross to trade back to 1.0866, 38.2% fibo on the 1.0624 / 1.1016 rise, 1.0820 is the 50% fibo on the same move, a move above the June high of 1.1036 and all bets are off."
Peter Fell, Analyst at FXBeat, notes: "The world seems to have turned bearish Kiwi, to my mind nothing much has changed, rates are on pause, but the next move is higher, intervention is likely just to be more jawboning. Sovereign demand is not going to disappear, the global hunt for yield will continue."
Peter adds: "That being said, a fairly low risk trade to buy NZD would be against the Aussie, recent forays above 1.10 have proved exhaustive, the last couple of days has seen a possible double top at 1.1016, if that is the case, there is scope for the cross to trade back to 1.0866, 38.2% fibo on the 1.0624 / 1.1016 rise, 1.0820 is the 50% fibo on the same move, a move above the June high of 1.1036 and all bets are off."