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AUD/NZD Shifting Gears

From the 1H to the Daily Chart, we can see AUD/NZD shifting gears after marking a record low at 1.0353. Let's start in the 1H chart.

The 1H AUD/NZD shows a market that has formed a price bottom and is now breaking out above it. Price is now pushing above the moving averages and the highs in the 1.0750-60 area are in sight.

(AUD/NZD 1H Chart 1/26)

When we look at the 4H chart, we can see that price action has been bullish in the short-term, since the 1.0353 record low. It has been making higher lows and higher highs. Today's price action again confirmed the bullish trend as price stayed above the 200-, 100-, and 50-period SMAs as well as a couple of rising trendlines. The 4H RSI held above 40, which reflects maintenance of the prevailing bullish momentum. 

(AUD/NZD 4H Chart 1/26)

As the 4H chart shows a bullish trend developing, the daily chart shows that this trend is within the context of a bullish correction against a prevailing downtrend in late 2014, which brought AUD/NZD from the year's high around 1.1304 down to 1.0353. 

(AUD/NZD Daily Chart 1/26)

We can see that price has already retraced 38.2%. If today's price action extends the recent rally ,the next key resistance will eb around 108.28-50 which involves the 50% retracement level and a previous resistance area. The 200-, and 100-day SMAs are just above this area, closer to 108.80. 

Wwe also see that 61.8% retraement is at 1.0940. Finally, the current bullish outlook within the context of a prevailing downtrend should be limited to 1.10, which is a psychological level and represents the support area of a previous multi-month consolidation.