The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
As detailed yesterday, I would not be chasing the price at current levels and with both the RSI and stochastic at extreme highs I would prefer to buy dips in the pair.
Yesterday’s Fibonacci levels have been invalidated due to the fact the pair made a higher high, however the 23.6% retracement of the recent rally from 1.0623 comes in at 1.0924, which could be a level we see buyers step in.
Traders who are happy to take a longer-term view on currencies would be interested to note that since 1995 whenever this pair has traded to the 1.04 – 1.05 area, AUD/NZD has undergone a fairly sharp snapback to the 1.17 area. What’s more, if you look at AUD/NZD on a monthly chart, a close this month above the June high of 1.1036 would see the pair post a bullish outside month. This would throw weight that 1.17 could be on the cards over the coming months.