AUD/NZD: More pronounced rebound coming? - Natixis

The clear upturn in daily volatility of AUD/NZD cross and the sharp turnaround of the daily indicators point to a more pronounced rebound, all the more so since an ascending channel is in evidence in the weekly chart, according to analysts at Natixis.

Key Quotes

“Under these conditions, it is likely the AUD/NZD will head towards the resistance at 1.1277 (upper band of weekly Bollinger) before eyeing the ones at 1.1330 (Fibonacci projection) and 1.1440 (38.2% Fibonacci retracement of 1.3810-1.0010 downward wave from March 2011 to April 2015). A breakout above this last resistance would instil new upward momentum towards 1.1625 (annual Bollinger moving average).”

“There follows that any pullbacks towards the support at 1.1160 (upper band of daily Bollinger), possibly the one around 1.1020-1.1035 (9-day moving average) should be seen merely as being by way of a correction.”