Currency Pair: AUD/NZD
Chart: 15 Min Charts
Short-Term Bias: Long

A short-term correction looks to be underway, and may offer profitable opportunities for forex traders.

                The AUD/NZD has moved higher after hitting a low of 1.2213, but has yet to come back within in the channel. Price action remains just below the lower channel, while the 120 SMA line looks to be turning over.

                Current price action continues to move within 1.2273 (50.0% Fib level) and 1.2205 (21.4% Fib level), but we expect the pair to move back within the channel over the next few trading session. We forecast a short-term correction to be underway, and will continue to hold a bullish outlook for the aussie as long as price action holds above 1.2100. However, the fundamental event risks scheduled for the next 24 hours may call for a change in our outlook.

Analysis

After peaking to 1.2383 during yesterday’s trading session, the AUD/NZD has come under considerable selling pressure, and has broken below the lower channel. A short-term correction looks to be underway, and may offer profitable opportunities for forex traders.

The divergence from the 120 SMA line has led us to hold a bullish outlook for the near-term, and expect price action to move back within the channel over the next few trading sessions. The big fall in the AUD/NZD has triggered an oversold RSI signal, and looks to be finding support near 1.2205 (21.4% Fib level). We expect the pair to work its way back towards the 120 SMA line, but may find resistance near 1.2300 (61.8% Fib level). Be sure to check out Jamie’s Technical Outlook for the additional information on the major currency pairs.