AUD/NZD produced a bearish 3-day candle pattern last week that threatened to derail the recent topside breakout, notes Westpac.
ST momentum has shifted to a negative bias in the last 1-2 days for the first time since trend support held at 1.0930/50. These price and momentum factors imply that topside risk has been negated in the ST, WP argues.
This is by no means a bearish MT/LT set up. Price has merely returned to the consolidation range that has contained it throughout July to September. Key support sits below 1.10 now, WP adds.
We hold a neutral ST bias while we search for the next buying opportunity, WP advises. 