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 and a close below needed to hint at a deeper correction that targets the $0.8244 Feb 20 low. Above $0.8525 is needed to kick start bullish momentum while a close below $0.8425 is now needed to place the up-trend in doubt and see immediate focus shift to retests of the 21-DMA.
The move lower continued on Wednesday with AUD/NZD briefly bouncing a little from the NZ$1.0553 Jan 27 low as daily tech studies look to correct from O/S levels. This may continue to limit downside follow through for the time being but bearish pressure remains with bulls looking for close above NZ$1.0645 to ease the current bearish pressure with above 21-DMA needed to shift overall focus back to layers of resistance in the NZ$1.0826-1.0950 region.
Following last week’s failure ahead of the key Y94.59 Nov monthly high, lower daily lows and highs this week have resulted in AUD/JPY dipping below the 21, 55 and 200-DMA’s on Wednesday. Bulls need to see a close above Y92.91 to ease the bearish pressure and divert current focus from a retest of the Y90.08-74 region to retests of the key Y94.59 Nov monthly high. Initial resistance is now noted at the 100-DMA which capped on Wednesday.
With the 55-DMA having supported bulls have taken comfort in the break higher and following the continuation higher on Wednesday immediate focus has now shifted to the Jan 31 high. Bulls are targeting a continuation higher that sees focus shift to the A$1.5668-1.5831 region with bears needing a close below the 55-DMA to ease bullish pressure. Overall a close back below A$1.5166 is needed to confirm a break of the 21-DMA and rising daily trend line.