AUD/NZD tests 2022 highs after breaking consolidation – Société Générale

💡 DMK Insight

AUD/NZD’s breakout is significant, and here’s why: it just cleared resistance at 1.15, which could signal a bullish trend. Breaking through this level suggests a shift in momentum, especially with support resting at the 50-day moving average (DMA) around 1.13. Traders should keep an eye on this support level; if it holds, we might see further upside. This move could also ripple through related pairs, like AUD/USD and NZD/USD, as traders reassess their positions based on the strength of the Aussie dollar. If the momentum continues, we could see a test of higher resistance levels in the coming days, making this a critical timeframe for swing traders. But don’t overlook the potential for volatility. If the pair fails to hold above 1.15, we could see a quick reversal back towards the 50-DMA, which would be a key area to monitor for potential short entries. Keep an eye on economic indicators from both Australia and New Zealand that could influence this pair’s trajectory.