AUDNZD – Approaching End of Correction Zone

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March will be remembered in history books for setting new records that are likely to stay put for a considerable amount of time.

Like elsewhere in the financial markets, FX saw increased volatility in most pairs, covering larger ranges.

Aussie was hit harder than most. NZD also weakened and was able to carve deeper ranges against the AUD.

AUDNZD hit just under parity for a brief period of time, before spiking back up. The low of 0.9990 posted on the 17th March is still the all-time low on the pair.

The daily chart above shows an immediate bounce off the 0.9900 low which managed to take prices above the 1.0200 handle.

This level recorded high activity over the bull market timespan and since prices are currently trading higher, it makes for decent support.

For now, the pair should find willing buyers around the 1.0340 zone for a potential swing towards 1.0550.

The 1.0550 target is where the correction can either end, offering a short-term sell, or continue to the upside towards the 1.0750 level.

The bearish opportunity carries the potential to revisit the 1.0200 handle. A better support structure is more vital for the firmness of the bullish move.

The 4-hour chart below projects the current price action. It shows two successive bullish breakouts and hints at the further strengthening of the trend.

audnzd

The most recent breakout level is the intermediate support structure. A failure will put the focus back on the 1.0330-40 region. The 4-hour chart, however, indicates a lower low near the 1.0300 handle.

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