AUDNZD

After 1.235 support that prevented further AUD decline vs. Kiwi, price has rebounded up from Sep.19 and reached first significant resistance @ 1.285. 300 pip advance from 04.Oct may find some correction down to 1.27 but upward trend is expected to continue.

Weekly pattern shows that a long term ascending channel remains intact and from purely technical angle, the expectation is to go higher to test 2011 highs. First weekly resistance point is around 1.32 where, if price fails to brake, would create a head-and-shoulder pattern opening further weakness in this pair.

Short term. - as said earlier, I will be a buyer at around 1.27-.275 area following a confirmation on RSI and Stoch (slow) indicators. Also, for further upside to hold, I am expecting 200EMA to hold within 50 pips range on 60 min chart. Current setup (60min) shows a slight divergence on RSI that may be a very short term sell signal with target of 100 pips of the current price @ 1.2845, but will see if this trade still holds after the beginning of euro-session opening. I am looking to at least one hit at the top of 1.285 to hold before placing that trade.