AUD/NZD was confined in an ascending channel for eight months. This long-term pattern was breached on January 8, but the rate has nevertheless returned near its bottom boundary on two occasions.
Meanwhile, the Aussie has been stranded between the 200-, 100– and 55-hour SMAs today. It is likely that a breakout would determine the pair’s direction for several sessions.
Technical indicators flash bearish signals; however, it is likely that traders are reluctant to push the pair below the combined support of the 100– and 55–hour SMAs circa 1.0895. It is expected that an upward breakout sends the pair for a test of the 1.0960 area where the bottom boundary of the senior channel and the weekly R1 are located and then towards the 1.10 mark.
Meanwhile, the Aussie has been stranded between the 200-, 100– and 55-hour SMAs today. It is likely that a breakout would determine the pair’s direction for several sessions.
Technical indicators flash bearish signals; however, it is likely that traders are reluctant to push the pair below the combined support of the 100– and 55–hour SMAs circa 1.0895. It is expected that an upward breakout sends the pair for a test of the 1.0960 area where the bottom boundary of the senior channel and the weekly R1 are located and then towards the 1.10 mark.