Thursday, May 20, 2010

AUD/NZD drops to 6-month low 1.2230

The Aussie has been depreciating across the board, weighed by a mix of risk aversion and concerns about a "hung parliament" in Australia, pushing the AUD/NZD to a fresh 6-month low at 1.2230, before picking up to 1.2300 area at the moment of writing.

The pair has accelerated downtrend after breaking below Fib support at 1.2440 area and long-term support at 1.2340, according to the Varengold Bank Research Team: "After breaking the Fibonacci support level of 38.2%, the AUD/NZD crossed the horizontal support line around 1.2340. It reached its lowest level since the end of October 2009. This break might be a signal for further falls towards the Fibonacci support lines below."

Next support levels, according to the Varengold Bank Research Team, lie at 1.2230 and 1.1925. On the downside, support levels lie at 1.2422, 1.2577, 1.2730.

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