Back
4 Apr 2014
AUD/NZD: Potential for 2nd squeeze to retest 1.0950 - ANZ
FXStreet (Bali) - Tim Riddell, Head of Global Markets Research at ANZ, thinks AUD/NZD has the potential for a second squeeze higher towards 1.0950.
Key Quotes
"After the steady decline seen through 2013, it is tempting to look for a substantial retracement when a base appears to be forming. However, current price action in AUD/NZD is more indicative of a consolidation of the slide from October’s 1.1585 rather than broader retracements to the Q3’13 congestion area (1.12-1.16)."
"A minor head and shoulders pattern into this month should also be seen as a consolidation pattern (“H&S” patterns are more often seen within corrections than reversals). The overall profile for AUD/NZD favours a secondary squeeze to retest 1.0950 (also “H&S” target) within a possible interim retracement (50%) and measured move to test 1.1050."
"Any slippage below 1.0700 would reduce the upside squeeze potential and leave AUD/NZD within a frustratingly tight consolidation range."
Key Quotes
"After the steady decline seen through 2013, it is tempting to look for a substantial retracement when a base appears to be forming. However, current price action in AUD/NZD is more indicative of a consolidation of the slide from October’s 1.1585 rather than broader retracements to the Q3’13 congestion area (1.12-1.16)."
"A minor head and shoulders pattern into this month should also be seen as a consolidation pattern (“H&S” patterns are more often seen within corrections than reversals). The overall profile for AUD/NZD favours a secondary squeeze to retest 1.0950 (also “H&S” target) within a possible interim retracement (50%) and measured move to test 1.1050."
"Any slippage below 1.0700 would reduce the upside squeeze potential and leave AUD/NZD within a frustratingly tight consolidation range."