AUD/NZD still struggling to hold above 1.0700
|- AUD/NZD is still struggling to rally sustainably above the 1.0700 level.
- A notable 50% Fib stand to block the price action at 1.0730, while the 38.2% Fib and 21DMA at 1.0650 offers support.
AUD/NZD made it back to close to its highest levels in over a month at 1.0720 on Wednesday, but has since slipped back below 1.0700, a level it struggled to rally substantially above on Wednesday. However, recent price action suggests the pair continue to squeeze ever more tightly in this area, implying that a more convincing break above 1.0700 and back to fresh multi-week highs above 1.0720 is growing in likelihood.
A break above this area would open the door to a test of the 50% Fibonacci retracement level from the mid-August 2020 high at above 1.10 to the early December low of just above 1.04, which resides at 1.0730. The next area of resistance above this would be the 6 October low/5 November high at 1.0760.
If the bears prevail, a move back towards the 38.2% Fibonacci retracement level from the mid-August 2020 high at above 1.10 to the early December low of just above 1.04, which resides just above 1.0650 would be likely. This area ought to offer solid support given that the 21-day moving average also sits around here.
AUD/NZD daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.