After reader Minotaurus asked about possible support in this pair on my AUD/USD post, I’ve had a little look and was quite surprised with what this long term picture showed;
AUD/NZD monthly chart 10 02 2014
The 1.0645 to 1.0500 area has been a very tight area of support for many years.
With the kiwi boys pricing in rate hikes and the aussie boys starting to switch to neutral from dovish we could see the pair fall back to that support on actual actions vs expected action. If that bias remains then, again, there’s a strong possibility of the downside being limited and those support areas are as good a place to test that as you’re likely to see.
Damn, I wish I’d seen this chart when we hit the lows last month. That is some fantastic support right there. Think I’m going to set up an alert for a break back down through 1.07
