Erratic activity through February and for the past week by both the Australian and New Zealand Dollars against the US Dollar reinforces broader ranges, which we now expect to continue to dominate through month-end into early March.
AUDUSD
The previous push above .7225 set a broader ranger environment for February.
Short/ Intermediate-term Range Parameters: We see the range defined by .6914 and .7243.
Range Breakout Challenge
- Upside: Above .7243 aims higher for .7327, .7385, .7440 and .7499.
- Downside: Below .6914 sees risk lower for .6825 and .6645.
A setback last week from barriers at .7215/19/43 (through which would see a bigger picture bullish shift), with the dip below .7078 support and bounce Friday, leaving a neutral tone for Monday.
For Monday/ Tuesday: We see a neutral tone between .7066/60 and .7187.
- Break above .7187 aims for the .7210/19/43 area, which we would look to try to cap.
- Break below .7066/60 aims for the .6983/71/63 area, which we would look to try to hold.
Daily AUDUSD Chart
NZDUSD
An aggressive rally in early February above .6678 signalled a shift to a broader range theme.
Short/ Intermediate-term Range Parameters: We see the range defined by .6879 and .6418.
Range Breakout Challenge
- Upside: Above .6879 aims higher through .6897 for 6970, 7009/12 and .7232.
- Downside: Below .6418 sees risk lower for .6343, .6232 and .6195.
A cautious tone for much of last week since the bearish outside Tuesday pattern, and then a dip and a bounce Friday, leaving a neutral tone for Monday.
For Monday/ Tuesday: We see a neutral tone between .6668/76 and .6564/62.
- Break above .6668/76 aims for .6735/39, .6747/53 and maybe .6767/76, which we would look to try to cap.
- Break below .6564/62 aims for .6541 and opens risk down to .6506, which we would look to try to hold.
Daily NZDUSD Chart
