NZD/USD managed to trade at fresh 2014 highs by a few pips on Wednesday, spiking above the 21 day upper Bollinger band ($0.8421) in the process. Bulls are now looking for continued oscillation around the upper Bollinger as the kiwi targets the $0.8541 Oct 2013 monthly high. Bears need to see a close below the $0.8370 level to ease bullish pressure while a close below the $0.8340 level is needed to shift immediate focus back to $0.8244.
The close below the 21-DMA last week saw bears take control once more with overall focus having returned to retests of the 2014 low and immediate focus having shifted to a retest of the NZ$1.0570 Jan 29 low. Bulls will need to see the pair close back above NZ$1.0720 to ease the bearish pressure while a close above the $1.0858 resistance level is needed to confirm a break of the 21-DMA and see immediate focus shift to the key NZ$1.0905-45 region
The bounce from Monday’s low has seen the pair take out the 21 (Y91.79) and 200-DMA’s (Y91.88) before stalling at the 55-DMA. Bulls have taken some comfort in the continuation higher and are looking for a retest of the key Y92.96 level that has previously stalled moves higher while bears are looking for a close below yesterday’s low to ease the bullish pressure and see focus shift lower to retests of the Feb 5 low.
EUR/AUD continues to retreat from Monday’s high with the pair now closing below the 55-DMA (A$1.5325) that previously supported. Bears are looking for a close below the A$1.5184 Feb 24 low to confirm a break of the 21-DMA and rising daily channel base (A$1.5189) and see immediate focus shift to the 100-DMA. Bulls need to see a close above Tuesday’s high to ease bearish pressure with a close above Monday’s high needed to kick start bullish momentum.