Technical Overview - AUDNZD, NZDCAD and NZDJPY

January 22, 2016 11:14

AUDNZD

The pair's every dip towards 1.0500 mark is getting bought into, making it a very strong support for the near-term. Moreover, this 1.0500 mark historic support accompanied with the pair's fall to all-time lows in Apr. 2015 seems to constitute towards formation of a bullish reversal Inverted Head & Shoulders pattern on daily chart, which would be confirmed once the pair decisive conquers 1.1500 mark important resistance. From current levels, until the pair continues holding above 1.0800 mark, it is likely to extend it up-move immediately towards its major resistance near 1.0900 mark. Further, sustained trade above 1.0900 mark could easily lift the pair back above 1.1000 psychological mark resistance. Meanwhile on the downside, weakness below 1.0700 round figure mark is likely to drag the pair back towards 1.0600 mark intermediate support ahead of the very important support near 1.0500 mark. Only a decisive break below 1.0500 mark might negate the bullish pattern formation, making the pair vulnerable to further downside in the near-term.

NZDCAD

The pair's sharp recovery from the lowest level since Sept. 2013, touched in Aug. 2015, failed to provide the required momentum to surpass a descending trend-line resistance near 0.9550-60 area. This trend-line resistance extends from Mar. 2014 highs through Mar. 2015 highs and hence remains an important hurdle for the pair to conquer. Reversal from the important resistance has now dragged the pair below its immediate support near 0.9260-50 zone, marking 23.6% Fib. retracement level of Aug. to Dec. 2015 up-swing. Hence, from current levels the pair seems to extend its near-term corrective move towards 50-day SMA support, currently near 0.9140-30 area, which could further get extended towards 38.2% Fib. retracement level support near 0.9070-60 area. On the upside, 23.6% Fib. retracement level support break-point near 0.9250-60 zone, now seems to act as immediate resistance. This is followed by a strong horizontal support near 0.9390-0.9400 mark, which if conquered could lift the pair back toward retesting the very crucial trend-line resistance, near 0.9550-70 region.

NZDJPY

The pair's recovery from Jan. lows provided the required momentum to surpass a strong resistance near 76.00 mark, representing the upper trend-line resistance of a short-term descending trend-channel formation on 4-hourly chart. The break-out momentum now seems to face resistance near 77.20-25 area, marking 38.2% Fib. retracement level of Dec. 2015 to Jan. 2016 down-leg. Sustained strength above this immediate resistance, also marking 23.6% Fib. retracement level of Dec. 2014 to Aug. 2015 downfall, seems to set the stage for continuation of the pair's near-term recovery towards its next major resistance near 79.40-50 confluence region, comprising of 100-day SMA and 61.8% Fib. retracement level of Dec. 2015 to Jan. 2016 weakness. Alternatively, failure to conquer this immediate resistance and a subsequent weakness below 76.50 immediate support, has the potential to drag the pair back towards 23.6% Fib. retracement level support near 75.90-80 area, also marking the short-term descending trend-channel break-out point.

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