Things are now looking up for the Kiwi bulls as the NZDUSD pair just broke above its medium term downtrend line which began last October 2009. The pair could crawl up until it finds some resistance at this year’s high of 0.7442. But if risk sentiment turns bearish again, the pair could fall back to the 0.7000 handle.
Let’s take a peek at the AUDUSD’s daily time frame. From the chart above, it looks like the pair is poised for a big move since it has been consolidation or moving sideways for quite some time now. If the pair is able to move past its two-year high of 0.9407, it could easily reach the 0.9500 psychological handle. On the flip side, the pair could slip back to the support at 0.9000 especially if risk aversion makes a comeback.
Lastly, let’s check out how the guppy’s doing. The pair has been on an uptrend lately and there’s a rising trend line connecting the lows of the price on the 4-hour chart. Just a few hours ago, the price broke above the resistance around 144.75 to 145.00 and went on to hit a high of 145.92 – just 8 pips shy of the psychological 146.00 handle! But with the stochastics in the overbought area, the price action could pull back a bit. It could retrace until the 38.2% Fibonacci level, where the price consolidated recently. It could pull back even lower and bounce from the trend line, right around the 61.8% Fibonacci level.