AUD/NZD Price Analysis: Back at the crucial 1.0850 area, will it be different this time?
- AUD/NZD technicals point to further gains but it needs to show strength above 1.0850.
- A week with many events for AUD and NZD might keep volatility at a high level.
The AUD/NZD pair has been rising since mid-July and it reached 1.0860. It is back near a critical area but it has arrived somewhat tired. Still, a daily close above, would reinforce the aussie, opening the doors to more gains.
The area around 1.0850 capped the upside several times during 2019 and also in 2020. A significant close clearly above would clear the way for another leg higher over the medium term. The rally of AUD/NZD is challenging the mentioned area and also the upper limit of a short-term ascendant channel.
A failure to break 1.0850 would likely lead to a correction. The key support is seen at 1.0730, horizontal level and also the uptrend line from July lows.
AUD/NZD daily chart
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
