Sat, Nov 28, 2020 @ 17:05 GMT
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AUD/NZD hits correction target, takes a breather before next move

AUD/NZD could be an interesting cross to note in the upcoming two weeks. Risk markets are now preparing for the next move after US election. The development in the cross would provide the guidance on which currency to move “faster” next. Additionally, how RBA is going to fulfil market expectations of easing on November 3, also next week, would be another factor.

The corrective fall from 1.1043 has hit target of 38.2% retracement of 0.9994 to 1.1043 at 1.0642. Downside momentum is diminishing as seen in 4 hour MACD, and we’d not anticipate any reacceleration for now. Sustained break of 1.0565 key support would indicate completion of the whole three-wave rebound from 0.9994 to 1.1043. That will open up deeper fall back to 61.8% retracement at 1.0395 and below. Nevertheless, break of 1.0727 will be the first sign of bottoming and will retain near term bullishness, with a retest on 1.1043 resistance in the cards.

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