AUD/NZD Price Analysis: 1.1030 holds the key to refresh multi-month top
- AUD/NZD remains on the front foot while extending recoveries from 10-day SMA.
- Immediate resistance line probes the bulls targeting September 2018 high.
- Overbought RSI doubts further run-up beyond the nearby upside barrier.
AUD/NZD picks up bids near 1.1015 amid the initial Asian session on Friday. In doing so, the pair keeps the previous day’s pulls back from 10-day SMA while heading towards a three-day-old falling trend line. However, overbought RSI conditions question the bulls.
As a result, the pair is likely to mark a major move unless breaking the area between 1.0940 and 1.1030, comprising 10-day SMA and the aforementioned resistance line respectively.
However, the pair’s upside momentum, as cited by an ascending trend line from July 28, suggests the quote remains firmer, which in turn keeps the bulls hopeful.
Hence, a clear break of 1.1030 will easily overcome the monthly high, also the highest since September 2018, to attack 1.1100 numbers to the north. Though, the pair’s sustained rise past-1.1100 will not hesitate to challenge the year 2018 peak close to 1.1190.
Meanwhile, a downside break of 1.0940 will have additional rest-points in the form of the monthly support line and 21-day SMA, around 1.0900 and 1.0850 in that order, before passing the reins to the bears.
AUD/NZD daily chart
Trend: Bullish
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
