The daily Slow Stochastic study continues to threaten a bearish cross from O/B levels which may start to weigh with bears initially looking for a dip back to the 21-DMA with a close below needed to hint at a deeper correction that targets the Feb 20 low. Above $0.8544 is needed to kick start bullish momentum while a close below $0.8432 is needed to ease bullish pressure and see immediate focus shift to retests of the 21-DMA.
AUD/NZD stalled ahead of the 55-DMA on Friday with the 21-DMA just above. Layers of resistance remain in the NZ$1.0764-1.0890 region with a close above needed to see focus shift to retests of the 2014 high. Bulls need to see a close above the 21-DMA to hint at further topside while bears are looking for a close below the NZ$1.0633 Mar 3 low to confirm a shift lower in focus that targets the 2014 low. Daily studies are looking to correct from O/S levels.
The pullback to start the new week marginally traded below the Y92.96 previous initial support with bears now looking for a close below Monday’s low to hint at a deeper correction with initial focus then shifting to the 200-DMA. Bulls need to see a close above the Nov Monthly high at Y94.59 to kick start bullish momentum and see focus shift to the Oct monthly high at Y95.67. A close below the 200-DMA would see focus return to Feb monthly lows
The 55-DMA has supported to start the new week as bears continue to look for a close below the A$1.5166 support to see immediate focus shift lower to retests of the A$1.4987-1.5054 region. While the 55-DMA supports bulls will target a break above A$1.5403 with initial focus currently on a test of the A$1.5496 Mar 3 high. Bulls need to see a close above this level to shift overall focus back to retests of the 2014 high.