By: DailyForex.com

The AUD/NZD pair has done the same thing for the last three days: form hammers. This is after gapping higher at the open of the week, so I believe it’s only a matter of time before this pair breaks out. Quite frankly, the New Zealand dollar versus the US dollar looks absolutely horrible, while the Australian dollar versus the US dollar is still above support. I don’t know that the Australian dollar is simply going to be the currency to own overall, but it certainly seems to be better off than the New Zealand dollar, and in this market that’s all that matters.

The gap below should continue to offer support as per usual, and I believe that the 1.11 level is of course massively supportive because of it. I think that pullbacks will continue to offer buying opportunities, but considering that we are in the last week of August, it’s likely that there just simply isn’t enough in the way of liquidity to get this market moving. With that in mind, I feel that you will have to be fairly patient owning this pair, but I think ultimately we will probably go as high as 1.15 given enough time.

1.10 is also a major support area.

I believe that the 1.10 level is going to continue to be supportive as well, and as a result even if we break down below the 1.11 level, I think there are plenty of buyers below. It is not until we clear the 1.09 handle that I feel comfortable selling as we would reenter a larger consolidation area, but quite frankly I do not see that happening without the NZD/USD pair breaking back above the 0.85 handle, something that looks very unlikely considering that there was a massive shooting star in that marketplace for the Thursday session. The New Zealand dollar looks like it’s ready to continue falling against the US dollar, and then by extension due to the fact that it is not as bad off as the Kiwi dollar, the Aussie dollar as well.

AUDNZD 82914

Related Articles
  1. Term

    What are Limited Partnerships?

    A limited partnership involves two or more partners conducting a business, but one is only liable for his capital investment. They are also called silent partnerships or limited liability partnerships.
  2. Investing

    The 5 Highest Paid CEOs

    While the media and lawmakers discuss whether it's right or wrong, these CEOs have earned gargantuan salaries in the last year.
  3. Investing

    The Unintended Consequences of Self-Driving Cars

    An overview of some unintended consequences of the driverless car revolution.
  4. Mutual Funds & ETFs

    ETF Analysis: PowerShares DB Commodity Tracking

    Find out about the PowerShares DB Commodity Tracking ETF, and explore a detailed analysis of the fund that tracks 14 distinct commodities using futures contracts.
  5. Mutual Funds & ETFs

    ETF Analysis: PowerShares FTSE RAFI US 1000

    Find out about the PowerShares FTSE RAFI U.S. 1000 ETF, and explore detailed analysis of the fund that invests in undervalued stocks.
  6. Investing Basics

    5 Tips For Investing In IPOs

    It’s not easy to profit from IPO​s, but the money is there.
  7. Term

    Why You Should Consider Investing In the Tech Industry

    The technology industry offers huge investment opportunities.
  8. Investing Basics

    A Primer On Investing In The Tech Industry

    The tech sector can provide fantastic returns for investors with a little know-how in the field.
  9. Investing Basics

    5 Tips For Investing In IPOs

    Thinking of investing in IPOs? Here are five things to remember before jumping into these murky waters.
  10. Mutual Funds & ETFs

    5 Mutual Funds that Hold Berkshire Hathaway Stock

    Discover the top five mutual funds most heavily weighted with Berkshire Hathaway stock, and the percentage of their assets dedicated to BRK.
RELATED TERMS
  1. Plain Vanilla

    The most basic or standard version of a financial instrument, ...
  2. Operating Cost

    Expenses associated with the maintenance and administration of ...
  3. Equity Market

    The market in which shares are issued and traded, either through ...
  4. Trade Credit

    An agreement where a customer can purchase goods on account (without ...
  5. Normal Profit

    An economic condition occurring when the difference between a ...
  6. Cost Accounting

    A type of accounting process that aims to capture a company's ...
RELATED FAQS
  1. Can mutual funds outperform savings accounts?

    A mutual fund can – and should – outperform a savings account. In most cases, it should not even be a close race. Savings ... Read Full Answer >>
  2. Can mutual funds invest in private companies?

    Mutual funds can invest in private companies, which may come as a surprise to many investors. It is rare for a fund to have ... Read Full Answer >>
  3. How do dividends affect retained earnings?

    When a company issues a cash dividend to its shareholders, the retained earnings listed on the balance sheet are reduced ... Read Full Answer >>
  4. Can my IRA be garnished for child support?

    Though some states protect IRA savings from garnishment of any kind, most states lift this exemption in cases where the account ... Read Full Answer >>
  5. Why is my 401(k) not FDIC-Insured?

    401(k) plans are not FDIC-insured because they are typically composed of investments rather than deposits. The Federal Deposit ... Read Full Answer >>
  6. Can I use my IRA savings to start my own savings?

    While there is no legal reason why you cannot withdraw funds from your IRA to start a traditional savings account, it is ... Read Full Answer >>

You May Also Like

COMPANIES IN THIS ARTICLE
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!