2 Jun 2014
AUD/NZD en-route to retest key support
FXStreet (Bali) - AUD/NZD is trading heavy in Asia, printing new session lows at 1.0935 after breaking out of a consolidation pattern on poor housing data out of Australia.
Building permits (MoM) in Australia for the month of April came surprisingly weak at -5.6% vs 1.8% expected and -4.8% last, leading to a breakout of 1.0950, with the AUD/NZD now en-route to retest key resistance at 1.09/0920 broken last week.
Technically, the pair should find formidable support between the areas of 1.0915 down to 1.0880, zone that represented a structural change in the multi-year bear trend that has dominated AUD/NZD price action. If bulls can regain control, there might be plenty of upside potential in the weeks ahead. On the contrary, bears should re-take 1.0875 to gain confidence, although it won't be until a break of 1.0750 that the constructive outlook in the pair may be negated.
Building permits (MoM) in Australia for the month of April came surprisingly weak at -5.6% vs 1.8% expected and -4.8% last, leading to a breakout of 1.0950, with the AUD/NZD now en-route to retest key resistance at 1.09/0920 broken last week.
Technically, the pair should find formidable support between the areas of 1.0915 down to 1.0880, zone that represented a structural change in the multi-year bear trend that has dominated AUD/NZD price action. If bulls can regain control, there might be plenty of upside potential in the weeks ahead. On the contrary, bears should re-take 1.0875 to gain confidence, although it won't be until a break of 1.0750 that the constructive outlook in the pair may be negated.