8 Apr 2014
AUD/NZD extending Monday's decline
FXStreet (Bali) - AUD/NZD is trading on a bearish tone mid Asia, setting a session low of 1.0747 after a downside acceleration from 1.0770 NY close.
Short term, it looks like the double bottom found at 1.0540 area has encouraged a new attempt to pull the rate away from its depressed multi-year lows, with price building higher highs and higher lows ever since the last test of 1.0540.
The present upward steeping formation, therefore, is a more constructive environment for longs, suggesting that any intraday setback will likely find plenty of dip buyers looking for a retest of 1.09 resistance in the coming days/weeks. A break below 1.0640 would put into question the ability of buyers to push further up.
Traders should note though, that rather than technicals, most of the action this week is set to be determined by the Australian jobs report and China's trade balance due on Thursday.
Short term, it looks like the double bottom found at 1.0540 area has encouraged a new attempt to pull the rate away from its depressed multi-year lows, with price building higher highs and higher lows ever since the last test of 1.0540.
The present upward steeping formation, therefore, is a more constructive environment for longs, suggesting that any intraday setback will likely find plenty of dip buyers looking for a retest of 1.09 resistance in the coming days/weeks. A break below 1.0640 would put into question the ability of buyers to push further up.
Traders should note though, that rather than technicals, most of the action this week is set to be determined by the Australian jobs report and China's trade balance due on Thursday.