By ForexMansion.com

 

The AUD/NZD pair has found strong support at the previous resistance area of 1.3500. The pair looks very bullish at the moment, and rightfully so. After all, the Kiwis just had a major earthquake, and have recently cut rates by 50 bps, twice as strong as expected. It appears by all accounts that the Kiwi Dollar is on the back foot.

Contrast that with the Aussie, which operates from a position of strength. Australia has a lot of the things that will be bought for Japanese and New Zealander rebuild scenario. Australia should come out quite well.

Any daily close below 1.35 changes the technical analysis. However, until that level is broken and held – this pair is a buy in most cases.

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