AUD/NZD Price Analysis: Buyers seek validation above 1.0370 near 20-day SMA
|- AUD/NZD posts fresh daily gains on Monday in the Asian session.
- Additional gains are envisioned for the pair if the price breaks 1.0370.
- The momentum oscillator holds onto the oversold zone and signalled underlying buying pressure.
AUD/NZD kick starts the fresh trading week on a higher note on Monday. The pair opened higher albeit fizzled out rather quickly on to travel to intraday high of. At the time of writing, AUD/NZD is trading at 1.0361, up 0.17% for the day.
AUD/NZD daily chart
On the daily chart, the AUD/NZD pair has been trading in the short-term downside trends since July 13, which is confirmed by the 20-day and 50-day Simple Moving Average (SMA) confluence at 1.0735. After testing the yearly low at 1.0278 on September 16, the pair began to consolidate the losses and took a recovery road to 1.0371, a session’s high.
The descending trendline from the high of July 13 at 1.0753 acts as a resistance for the bulls. If the price breaks the bearish sloping line, it could move back to the 1.0400 horizontal resistance level. The Moving Average Convergence Divergence (MACD) indicator trades in the oversold zone. Any uptick in the MACD would accelerate the buying pressure toward the high made on September 7 at 1.0455 followed by the 1.0550 horizontal resistance level.
Alternatively, if the price moves lower, it could retest the previous session’s low of 1.0337 followed by the 1.0295 horizontal support level.
AUD/NZD additional level
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