AUD/NZD Price Analysis: Off seven-week-old support line as MACD flirts with bulls
|- AUD/NZD bears catch a breather after declining to the lowest since April 22 the previous day.
- MACD conditions back the strong support to suggest further consolidation in prices.
- Late-October lows offer immediate resistance, bears can eye sub-1.0500 area on the trend line break.
AUD/NZD consolidates recent losses around 1.0570/75 amid the early Friday morning in Asia. The quote dropped to the lowest in nearly seven months on Thursday before bouncing off a downward sloping trend line from October 25. The pullback also gains support from MACD signals that stop singing the bearish song.
That said, AUD/NZD buyers are waiting for entries while considering a two-week-old horizontal line around 1.0600 as an immediate upside hurdle.
While an up-move beyond 1.0600 can aim for 1.0630/35 and the 1.0700 threshold, the 200-bar SMA level of 1.0720 becomes the key resistance ahead of the monthly top of 1.0770.
Alternatively, a downside break below the stated support line, at 1.0546 now, will not refrain from challenging the April 21 bottom close to 1.0470 while any further weakness by AUD/NZD will make it vulnerable to revisit the late-February low surrounding 1.0380/85.
AUD/NZD four-hour chart
Trend: Pullback expected
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