May 24 2021
The AUD has support at 0.7710/20 and looks to have found a base after Fridays sell off. Some buying pressure to the upside is now being applied and I would think we will see another run up to the familiar 0.7770/0.7780 Area.
A Break of 0.7780 would allow the Ozzie to progress towards 0.7810.
However, should the downside at 0.7720 get broken, the next target would be some good support at 0.7660.
The Kiwi looks a bit shaky at the bottom of its recent range, but before we go looking for a break down, you need to remember we have a Reserve Bank of New Zealand monetary policy meeting on Wednesday morning.
I am sure they won’t raise interest rates, but the NZ economy is in pretty decent shape. So I wonder if they might signal a change to their accommodative stance. They could be the next Central Bank to follow the Banks of Canada and England into tapering. That would be interesting in an otherwise dull week.
Right now to get the Kiwi on a firmer footing we need a rally to, and over 0.7190.
Otherwise the risk is for a deeper drop to 0.7110.
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