Technicals | Mar 29 2011
By Rudi Filapek-Vandyck
The TechWizard reports AUD/NZD has formed a so-called "Bullish triangle" during a process of consolidation and we are nearing the break out point zone of the triangle. He believes there's a clear trading opportunity at hand, driven by interest rate fundamentals.
Notes the Wizard, six of seven FX strategists interviewed by the NZ Herald newspaper expect NZD/USD to decline on increasing dovish comments from the RNBZ as the New Zealand economy is barely escaping going into recession post the Christchurch earthquake. Meanwhile on the other side of the Tasman, FX experts are increasingly debating the Aussie dollar going for 1.05 and potentially 1.10 by year end against the USD.
Combining both prospects must thus lead to a strengthening AUD against the NZD, says the Wizard. He suggests AUD/NZD is now on its way to 1.39 and potentially beyond.
The TechWizard reports he has taken a market positioning in line with the above commentary.
The TechWizard is the pseudonym of Scott Morrison, whose experience in financial markets exceeds twenty years. Morrison operates his own website nowadays at www.techwizard.com.au. All views expressed are the TechWizard's, not FNArena's (see our disclaimer).
Technical limitations
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