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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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New Zealand Dollar to Rally Further

The New Zealand Dollar is having a good year. The currency is up by 259 pips against the U.S. Dollar since January 1st. On our first chart below we see that after bottoming out in the middle of last year, it’s been a slow but steady grind higher.
This is confirmed further by looking at lower timeframe chart. Below we see the same momentum higher on the 4 Hour chart. I expect this to continue into year-end. The post-election USD rally seems to be exhausting itself and this should benefit my long …
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TInna avatar
TInna 1 Dez

very well!

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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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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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Large Gains for the Kiwi

The NZD/USD spent most of last year in the dulldrums. The currency fell from 0.7800 to a low of 0.6071 before retracing somewhat. We are currently quoted at 0.6980.
But there are signs that a recovery is under way. On the chart below we can see that the NZD/USD has just cleared an important resistance area around 0.6900. After two-three false breaks, we're finally leaving this resistance behind.
I'm placing my bet on 0.7381, this is around 400 pips away from the current price. The average monthl…
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wisdom_consultant avatar

good analyses

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Trading on New Zealand reports tonight

There are 3 reports from New Zealand tonight at 21:45 GMT:
1. The Private Wages Excluding Overtime for Q4, which helps to asses inflation pressure. The expected target is 0.5% q/q and the previous was 0.4% q/q.
2. The Employment Change for Q4 with expected target ~0.6% q/q and previous data 1.2% q/q;
3. Unemployment Rate Q4 with expected target 6.0% and previous data 6.2%;
With this reports I expect a big move, but I have no idea in which direction. For that reason I'll try to catch some pips in…
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New Zealand Dollar Outlook for 2014

The resilience of New Zealand’s economy this year was nothing short of impressive. The country survived a slowdown in its 2 most important trading partners – Australia and China. Infact 2013 has been a good year for the New Zealand dollar and for 2014 the outlook is even brighter. The value of the kiwi did not change much in U.S. dollar or British pound terms this past year but against the Australian dollar and Japanese Yen, the currency appreciated over 13%.
There are 3 central reasons why New…
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aranybanya avatar

Nice outlook, good luck with this + Happy New Year!

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