AUDNZD: Westpac Look To Enter Longs If Pullback Goes Further
Westpac write “AUD/NZD had been poised for a pullback during the past few weeks. After peaking at 1.1636, it was technically stretched and at a 12-year high”.
- They go on to flag that “the catalyst for a pullback came today, from the RBNZ’s hawkish cut. So far, it’s been worth around a cent, but it could extend further to the 1.1300 area (a 38% correction), and possibly even 1.1200 (a 50% correction), if economic data in NZ moves in the expected direction ahead of the RBNZ’s Feb meeting (we’ll get GDP, inflation and labour)”.
- Westpac would “such a correction as an opportunity to enter a medium -term AUD/NZD long, since the theme of Australian economic outperformance likely has some way to go. Reflecting that, even after today’s RBNZ pivot, yield spreads continue to trend in AUD/NZD’s favour”.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
MNI EXCLUSIVE: Former PBOC official shares his view on new Five Year Plan
A former PBOC official shares his view on China's new Five Year Plan. On MNI Policy MainWire now, for more details please contact sales@marketnews.com
EUROSTOXX50 TECHS: (Z5) Bullish Trend Sequence Intact
- RES 4: 5800.00 Round number resistance
- RES 3: 5777.41 1.382 proj of the Aug 1 - 22 - Sep 2 price swing
- RES 2: 5727.18 1.236 proj of the Aug 1 - 22 - Sep 2 price swing
- RES 1: 5717.00 High Oct 21
- PRICE: 5711.00 @ 06:49 BST Oct 27
- SUP 1: 5615.66 20-day EMA
- SUP 2: 5531.66 50-day EMA
- SUP 3: 5423.00 Low Sep 25
- SUP 4: 5366.00 Low Sep 17
The trend structure in Eurostoxx 50 futures is bullish. The recent breach of 5689.00, the Oct 2 high and bull trigger, confirms a resumption of the uptrend. This maintains the price sequence of higher highs and higher lows and note that moving average studies are in a bull-mode position, highlighting a dominant medium-term uptrend. Sights are on 5727.18, a Fibonacci projection. First support lies at 5601.40, the 20-day EMA.
SCHATZ TECHS: (Z5) Approaching Support At The 20-Day EMA
- RES 4: 107.348 50.0% retracement of Apr 7 - Sep 25 bear leg (cont)
- RES 3: 107.320 High Oct 17 and the bull trigger
- RES 2: 107.235 High Oct 22
- RES 1: 107.175 High Oct 24
- PRICE: 107.070 @ 06:38 BST Oct 27
- SUP 1: 117.050 Intraday low
- SUP 2: 107.014 76.4% retracement of the Sep 25 - Oct 17 bull leg
- SUP 3: 106.995 Low Oct 8
- SUP 4: 106.965 Low Oct 6
A short-term bear cycle in Schatz futures remains intact and the contract has traded lower today. For now, the current bear cycle that started Oct 17 is considered corrective and is allowing a recent overbought trend condition to unwind. An extension lower would open 107.014, a Fibonacci retracement, and the next important support. On the upside, initial resistance is at 107.175, Friday’s high.
