The Australian dollar and the New Zealand dollar are both seen as risk assets, but these antipodean currencies do not always go in the same direction.
The team at SocGen see an engulfing candle:
Here is their view, courtesy of eFXnews:
AUD/NZD is showing a recovery and considering close around current levels, it will form a bullish engulfing on the weekly charts, notes SocGen.
“A recovery looks likely as highlighted by daily RSI which is pulling back after testing a graphical floor.
The move above 1.07/1.0740 indicates a test of previous lows at 1.09 and probably even a recovery towards 1.1020, the 61.8% retracement from September highs.,” SocGen projects.
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