Forex Trading - AUD/NZD Trading in a Tight Range Between Some Key Technicals (CLICK FOR CHART)

Reviewing the Aussie Kiwi pair on a daily chart using the 3/26/08 lows and 7/24/08 highs, we notice some key technical levels that have come into play. With the markets building in more aggressive interest rate easing in Australia and well as some earlier easing concerns in New Zealand, the losses the Aussie sustained against the Kiwi have been more measured than against other currencies. Today however, we find the pair trading in a tight range, between the 38.2% and 50% retracement for the second half of August, with one close above 38.2%. With the 100 day and 200 day moving averages providing some resistance and support along this range, a break in either direction could create a revised perspective.