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Forex: Break above 0.9920 key to upgrade outlook for the Aussie

FXstreet.com (Barcelona) - The Australian Dollar is enjoyed the resurgence of buyers around the 0.9850 year lows to currently test a twin top at the 0.9915/18 vicinity. The pair has now to violate this level to upgrade its short term bullish technical outlook.

As observed by Chris Moyer, editor at FXstreet.com, on today's pattern analysis: "1 hour chart is forming a possible inverse head & shoulders bottom. Also, there are numerous ‘bullish divergences’ between price and RSI which is another sign downside momentum is struggling to show up. owever, it should be realized this development often leads to a ‘counter trend bounce’ not a substantial trend change. Pattern needs an hourly close above 0.9920 to be confirmed which targets 0.9990."

A break and close above 0.9920 is key as it would break what has been a constant pattern since the multi-month range break, where hourly bounces have failed to reach and close above previous swings highs, the latest attempts on May 15 and yesterday an example of the ongoing selling interest present. While Chris mentions a level near parity as final target, a hurdle to be faced if the rate is to recover ground will also be around 0.9940, May 13 low. Clearance above it clears up the picture.

Forex: USD/JPY consolidates above 102.00

USD/JPY is last at 102.23, little changed for the session being and at same price it was in previous Asia-Pacific open yesterday, printing another fresh 4.5-year high in between at 102.78, at the time US equity indexes are posting all time record highs. Following recently released best GDP figures in Japan for over a year, Nikkei index opens in Tokyo above the 15150 points, adding +0.25% gains, at its highest since late 2007.
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Forex: NZD/JPY continues to consolidate in tight range on daily chart

The NZD/JPY traded in a very narrow range for a third day in a row, closing down 8 pips at 83.89. NZD Business PMI was released a bit earlier in the session at 22:30GMT, coming in at 54.5 actual vs. the previous print of 53.4. The data did not seem to have much influence on the pair, which is currently edging higher in Asia trade at 84.34. On a final note, we will also see the NZD Budget release due out later at 2:00GMT.
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