A positive cross in AUDNZD RSI, through it’s average rate, was seen at the end of January. This was confirmed by a ‘golden’ cross in the spot rate in early February. This confirmed a bullish bias on our Trend Table.
Prices rose almost 3 1/2 big figures after that – taking AUDNZD to 11 month highs, to within 15 pips of our 1.1036 target and through the Ichimoku Cloud pattern for the first time since last April. Unsurprisingly after such strong upside profit taking was attracted at overbought extremes.
Last week’s strong AUDNZD setback extended Monday but has since found fresh buying interest. Importantly that fresh demand occurred at the top of the weekly Ichimoku Cloud pattern and this reinforces the underlying positive tone for AUDNZD.
A retest of 1.1036 is expected with a move through that point then exposing sentiment to 1.1141.
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