AUDNZD rose above 109.00 yesterday as the pair look towards hitting further fresh highs.
The surge was visible from June 13th which was when the prices were last engulfed in the Ichimoku cloud. Since that date, prices have emerged from the cloud indicating further progression on the upside.
The median regression line held support for some time at 50% Fibonacci retracement (1.0743). This level was also in conjunction with the Kijun convergence line. However, as the Tenkan line was trading higher, a break on the upside was expected.
A test at the upper regression channel met with some resistance. However, another move towards 1.0923 which is at 100% of the Fibonacci retracement is likely. The momentum indicator supports this concept as the prior rally shows no divergence against the price.
A shorter time frame shows a further bullish trend. Dovish tests on the lower regression channel have failed with prices slowly trading away from the Ichimoku cloud.
Should the median regression channel break, we could see price moving into to the 109.500 range.
However, the momentum indicator hints to a short-term bearish divergence which may indicate a trend reversal. Should prices fall into the Tenkan and Kijun range we may see another test at the lower regression channel at the 78.6% Fibonacci retracement. Once there, the cloud could engulf and drag the price down towards the golden ratio level of 61.8%.
Test your strategy on how the AUD will fare with Orbex - Open Your Account Now.
