AUD/NZD stepping up the trend line

July 18, 2016 09:55

AUD/NZD is in uptrend and traders are looking for new long opportunities on a pullback. New Zealand CPI is below expectations, there is also a possibility of a rate cut. Generally speaking New Zealand is a smaller economy, it might eventually lose to trade agreements and currently Australia has more bargaining power and more diverse economy. Fresh AUD strength started after elections but we also saw commodities up in the past week.

Technically AUD/NZD is showing confluence within H3, 61.8, and ascending trend line. 1.0640-60 is POC zone and we could see now moment buyers. If the pair makes 4h close above H4 it should target 1.0740. H4 chart shows possible extension to 1.0770. 1.0600 should hold for uptrend scenario to be valid.

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