AUD/NZD having best day in months, hits 3-week highs

AUD/NZD is having the best daily performance in months on Wednesday, making a strong reversal after falling at the beginning of the week to the lowest level since May 2015.

The pair recently broke a short-term downtrend line and accelerated to the upside. Recently it printed a fresh daily high at 1.0540, the strongest level in three weeks. It remains near the top, holding a strong bullish tone.

More gains ahead?

On Monday AUD/NZD bottomed at 1.0379 and then moved back to the previous trading range. That range was broken today strengthening the bullish outlook.

Now the pair appears to be headed toward a test of the 1.0560/70 region, that during the last quarter of 2015 and in June was a key support; now it could offer resistance. If the Aussie breaks above, it could open the doors for more gains.