Monday, 3 July 2017

AUD/NZD meets resistance at 23.6% Fibo

The hawkish RBNZ stance strengthened the New Zealand dollar along with the good economic figures and on this basis the AUD/NZD is seen in downtrend since the middle of March. 
Last week the pair fell to 1.0385, a level that has not been visited since early February.
On the four-hour time frame the 200-day SMA is showing strong bearishness, while the 20-day SMA has turned to north. RSI is located around its mid-line, but has lost directional strength. Stochastic is displaying bearish signs but however now is navigating slightly below its mid-lines.
Strong resistance is seen at 23.6% Fibonacci retracement of latest March to June slope to downwards, currently located at 1.0525. In case of breaking it to above, the pair might visit higher levels.
Looking to downwards, key support is the 1.0375 area (last week’s lows). In case bears are tempted to test it, the pair most like will drop to parity.


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