The Australian and New Zealand dollars have seen some divergence. The Aussie is somewhat stuck after rising while the kiwi seems to have momentum. What’s next? The team at NAB examines the antipodean cross with Bollinger Bands:
Here is their view, courtesy of eFXnews:
NAB FX Technical Strategy Research notes that AUD/NZD bearish weekly reversal pattern completed in March has triggered a multi-week decline that is accelerating beyond the point of being deemed a correction.
While weekly closes remain below 1.0591, key support at the lower weekly Bollinger band at 1.0380/90 remains under threat.Last week’s modest bullish reversal has somewhat neutralised the downtrend bias.
The sustainability of the MT downtrend relies upon a weekly close below 1.0380/90.
AUD/NZD is trading circa 1.0390 as of writing.
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