The Australian dollar has bounced slightly against the Kiwi dollar during the early part of the Monday session to defend the 1.1950 level.
AUD/NZD
The Australian dollar has bounced slightly against the Kiwi dollar during the early part of the Monday session to defend the 1.1950 level. This is an area that has been important multiple times, so it does make a certain amount of sense that it is a market that will eventually try to do everything it can to stay somewhat afloat.
Top Regulated Brokers
The market had previously been in a major uptrend, but recently, we have seen New Zealand become a little bit tighter with its monetary policy, and that, of course, has had a major influence on how things behave. With this being the case, I look at this market as one that remains noisy. I look at this as a market that remains volatile, but I also think that we are just trying to work off some of the massive uptrend that we had seen for a while. After all, even if New Zealand continues to tighten monetary policy, most traders will look for the Australians to do the same thing, and eventually this will level itself out.
Technical Support and Future Outlook
The 200-day EMA is at the 1.1850 region, so as long as we stay above there, technically speaking at least, we are still very much in an uptrend and a lot of longer-term traders will look at it as such.
If we can break above the 1.22 level to the upside, that kicks off the next potential leg higher, but right now, I think the market is probably more likely than not going to be comfortable just grinding back and forth, working off some of the froth. The bounce on Monday does suggest at least that the support is going to continue to offer a little bit of a floor.
Ready to trade our Forex daily analysis and predictions? Check out the best forex brokers in New Zealand worth using.