The 1.06 price area has been the battlefront of the bulls and bears of this pair since May of 2015. This area has provided support until June 9th of this year where a selloff pushed the pair below this critical support area. In the last nine weeks, the pair has sold off, rebounded back above 1.06 and sold off again below 1.06.
Current situation:
- On the 3-day chart, the pair has posted two red candles since the 8-8-2016 shooting star.
- The daily chart has an uptrend in place in the near-term, but this is part of a larger triangle pattern setting up a continuation pattern to the downside.
Looking ahead:
- The NZD data was all stronger than expected today. AUD data around employment comes tomorrow.
- While NZD data was positive, I am skeptical the AUD will be taken by the market well. There is substantial skepticism regarding the Chinese economy which has a significant impact on AUD.
- Weak numbers will solidify the RBA path to additional easing.
Notes:
- This selloff could quickly run down to 1.0100
Current situation:
- On the 3-day chart, the pair has posted two red candles since the 8-8-2016 shooting star.
- The daily chart has an uptrend in place in the near-term, but this is part of a larger triangle pattern setting up a continuation pattern to the downside.
Looking ahead:
- The NZD data was all stronger than expected today. AUD data around employment comes tomorrow.
- While NZD data was positive, I am skeptical the AUD will be taken by the market well. There is substantial skepticism regarding the Chinese economy which has a significant impact on AUD.
- Weak numbers will solidify the RBA path to additional easing.
Notes:
- This selloff could quickly run down to 1.0100