AUD/NZD: Long term base in place - Westpac

In view of the Tim Riddell, Research Analyst at Westpac, sustaining the break above 1.0600 for AUD/NZD pair would increases bias for a base being in place while faltering momentum and failure to breach 1.0785 suggest interim corrections.

Key Quotes

“The depth of interim slippage is critical with 1.0600 as a pivot. A swift close above 1.0785 is needed both to lift momentum and suggest an more dynamic uptrend.”

“Weekly

• The burst higher in both price action and weekly momentum has allowed for a full retest of range resistance. Potential for a range flip higher persists
• Rising support underscored the possibility of a longer term base and dips need to be limited to affirm the growing potential for larger scale rebounds.”

“Monthly

• Monthly momentum is beginning to show a more pronounced positive turn. 2015’s 1.0200 low is more clearly a structural base.
• The overlapping price action seen since 2H 2015 still suggests that a volatile but long term base is forming in advance of a potentially dynamic uptrend
• Long term base in place, but price action continues to frustrate as consolidation continues.”