Following today’s sharp appreciation ofthe New Zealand dollar the AUD/NZD made a breach below a key support level.
Expanding on this morning’s Wild Card selection from the FOREXYARD Daily Analysis, the AUD/NZD has hastily fallen from its early May high and this morning the pair has moved below the significant 1.3190 support level from the mid-April low. The AUD/NZD briefly fell below the psychological support level of 1.3100 but was unable to hold this mark after the European open.
Downward pressure is building on the pair after the breach and the selling may continue. Initial support is found at the trend line off of the November and January lows which comes in today at 1.3015. A breach here and the AUD/NZD would target a range between the January pivot at 1.2775 and 1.2470, the latter being the 61.8% retracement level from the 2010 low to the May 2011 high. The November low at 1.2640 would be a last stand for the Aussie dollar.
To the upside, the mid-April low will now switch from support to the first resistance level followed by the mid-May low at 1.3350. The pivots from May and March also deserve a mention at 1.3700 and 1.3790 respectively.
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Russell Glaser is a Currency Analyst with ForexYard. Russell provides analysis in the FX spot market by employing fundamental research methodologies. In addition to currencies, Russell closely follows the correlation between the Commodities market and the movement of equities. His writings have been published on the ForexYard Trading Blog and associated partner sites. Prior to joining Forexyard, Russell Glaser served as a management consultant in the financial services industry, advising Fortune 100 companies. Russell holds a degree in finance from the Fisher College of Business at The Ohio State University.
