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Aussie Back on the Offensive

The Australian Dollar is back on the offensive. This month we got yet another test of the important resistance in the 0.7700 – 0.7800 area. Prices peaked at 0.7749 this time around before pulling back.
However the move lower wasn’t Aussie specific but happened on general risk aversion across all markets. This gives me reason to think that the next time prices rally toward the resistance we could get a breakout above.
Our final chart above shows this resistance area. You can see that it’s been …
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AUD/NZD in Range on Multiple Timeframes

The AUD/NZD has been trading in a tight 550 pips range since July of 2016. On our first chart below we can see that the high of this range is around 1.0770 while the low is at 1.0220.
Zooming out a bit we're seeing another range, inside which the range above can be placed. In fact the AUD/NZD has been congested since the start of 2014. A situation of two years lack of trends is not an easy thing to overcome. Thus I'm placing my forecast at 1.0653, close to the current price.
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fxsurprise8 avatar

UPDATE 1: While the AUD/NZD didn't trade range-bound so far this month, there hasn't been much movement either. We're now quoted at 1.0808, only 155 pips from my forecasted price.

This is a distance that can be overcome in 2-3 days of trading so there is still a chance here! While prices definitively broke the first resistance at 1.0770, they're having trouble breaking above the second important level.

Overall mixed results so far but hoping that mean reversion will kick in soon. That has been the modus operandi for this pair for the past several years.

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AUD/NZD Still Deep in Range Mode

The AUD/NZD is naturally a mean reverting pair due to the closely linked economies of Australia and New Zealand. But this has been the case even more in the past few years as the pair has repeatedly failed to trend. On the weekly chart below we see that any attempt to get something going was shut down, with rallies being sold into and sell-off being bought.
Take a look at the hourly chart below. The pair opened December at 1.0437 and is currently trading at 1.0386, not even 50 pips lower. This s…
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fxsurprise8 avatar

The range-bound behavior in this pair continues! We opened January at 1.0375 and we're currently quoted at 1.0393, not even 20 pips higher.

The highest high during this month has been at 1.0570 while the lowest low was at 1.0324. A total monthly range of only 246 pups or just above 2 percent.

This is a very small amount for a pair comprised of two major currencies. Hopefully this trend continues into the end of the contest. We now have the long-term charts, the daily charts and the hourly charts all pointing flat.

fxsurprise8 avatar

On the last day of the contest the AUD/NZD inched away from my forecast. Prices rallied to a high of 1.0433 at one point, but likely we got a pullback as we got closer to the 12:00 mark.

In the end the pair 'closed' the contest period at 1.04143, only 17.3 pips away from my forecasted price. In percentage terms this is 0.1375%.

The short version is the AUD/NZD behaved exactly as expected, continuing in the vein of range-bound trading that has been its mark for years. In my last update I will do a more detailed review of this month's trading, along with a chart to back up my analysis.

fxsurprise8 avatar

Time for a final update. The two lines in picture above show the yearly open at 1.0375 and the contest period 'close' at 1.04143. The range during January is marked with a rectangle on chart.

The two obvious conclusions are one, the pair continued to range this month. You can't see a difference in the price action during January compared to the prior months.

The second conclusion is that prices didn't move much. The price difference between January 1st and the contest end on February 1st was only 39 pips, not even half a percent. Overall everything went according to the plan outlined above.

Sveetlana avatar

very interesting article! good gob!)

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Australian Economy Overview, USD/SEK Technical Analysis | 12:00 GMT Dukascopy Research Webinar 07.12.2016

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Aussie to Make a Break for 0.8000

It’s been a good year for the Australian Dollar. The pair is up by 200 pips this year. This may not look like much but keep in mind that these gains were made in the context of general Dollar strength. Our first chart bellows shows the tentative but clear uptrend in 2016.
On our next chart we can see the same momentum higher but on a lower timeframe chart. While other pairs continue to suffer after Trump’s election win, the AUD/USD is heading higher. With both the long-term trend and the short-…
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TInna avatar
TInna 1 Dic

good

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AUD/NZD trendless tendency

CHART SCALE: Weekly
INDICATORS: Parabolic Sar, Money Flow Index, Linear Regression Slope
RESISTANCE LEVELS: 1.0771
SUPPORT LEVELS : 1.0302
PAIR ANALYSIS :
AUD/NZD is in a trendless tendency with the price that could be integrated between the key level price at 1.0771 and the 1.0302.The Linear Regression Slope around 0.0002 and the configuration of the Parabolic Sar seem to support the trendless tendency before with the possible technical retracement at the support area . The currency chart patte…
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foreignexchange avatar

Comment 6 - The AUD/NZD chart in this way suggest the possibility of a slightly bearish tendency for the Australian session.

foreignexchange avatar

Comment 7  - The take profit could have supported the bearish retracement of the pair. The Australian zone have shown that the tendency seems the improving of the Commodity production Industry economy and the related  trade balance.  The AUD/NZD chart could show a slightly bullish tendency considering also the linear regression slope tendency.

foreignexchange avatar

Comment  8  - The Australian index is in a trendless tendency. The financial market seems to support the tendency. The linear regression slope and the MFI analysis suggest the slightly bearish tendency. The Australian session can start with a trendless domination.

foreignexchange avatar

Comment  9 - The linear regression slope and the MFI analysis seems to suggest the slightly bearish tendency. The SMA and the parabolic Sar also seems to support the tendency.  Bearish tendency for the Australian dollar opinion for the Australian session.

foreignexchange avatar

Comment 10  - The Australian dollar is in a  trendless tendency. The index linear regression slope support the a slightly buy opportunity. The currency pair could support the  trendless tendency at the US session.

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More of the Same in the AUD/NZD

I'm expecting more of the same for the AUD/NZD and here's why. First on the long-term charts we can see that this pair has been range-bound for the past 2 years. Although volatility has been high at times with prices hitting a high of 1.1676 last August and a low of 1.0019, no major changes happened in price.
This volatile but untimely range-bound movement can be seen in the second half of this year as well. See the chart below. During October the monthly range has been very small as well at onl…
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fxsurprise8 avatar

It's been a trending month for most currency pairs but not so much for the AUD/NZD. Here we saw prices initially fall down over 300 pips, only to rally over 300 pips, then fall by over 200 pips.

So far in November we saw a total range of 340 pips, with a high of 1.0703 and a low at 1.0363.  This may seem like a lot but we are currently quoted at 1.0570, only 61 pips down since November 1st.

Compared to my forecast above we're down by 66 pips or around 0.62%. I will need some bullish movement into month-end to climb higher in the rankings.

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AUD/CAD Little Changed in Decades

The AUD/CAD is trading little changed in decades, as you can see on our first chart below. There is a fundamental reason for this, both the Aussie and the Loonie are commodity currencies. Commodities tend to rally or fall together in giant super-cycles. So more often then not, if the AUD is under pressure so will be the CAD, leading to no major price move against each other.
But let's drill down a bit. On our next chart below we can see what has been happening inside that small rectangle marked …
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No Clear Trends Seen in AUD/NZD

No clear trend can be seen in the AUD/NZD. Volatility has been high at times with prices hitting a high of 1.1676 last August and a low of 1.0019 in April 2015. But no major changes happened in price as we saw the pair snap back from the extremes.
The two economies of Australia and New Zealand are closely linked thus range-bound movement seems to the norm for this pair. The short-term daily chart below confirm this view. We've made no progress in this pair since June of this year. Furthermore th…
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fxsurprise8 avatar

The AUD/NZD is now quoted at 1.0640, about 120 pips above my forecasted price. The monthly range has been fairly small as well at only 260 pips, with a high at 1.0764 and a low at 1.0504.

Furthermore we still remain deep inside the now five-month range that started back in June, with a high at 1.0771 and the five-month low at 1.0236.

The three arguments above confirm my original analysis from above that there are no clear trends in this pair. I will need a helping hand from the market to move prices a bit closer to my target though.

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AUD/NZD to Reverse at Support

The AUD/NZD is nearing important support, this year's low for the pair at 1.0309. We're now quoted at 1.0379 after trading as low as 1.0349 just few hours earlier.
The second reason why I'm betting on a reversal rally here is ho oversold the AUD/NZD is right now. Note the Stochastic on the 4 Hour chart is below 20, signalling oversold territory. My target is 1.0741, right below this summer's highs in this pair. I think a 400 pips rally is about the max the AUD/NZD can do in one month.
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rashadali avatar

good job )

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