AUD/NZD Price Analysis: Bears approach 1.0670 key support with eyes on RBNZ
- AUD/NZD holds lower ground after reversing from two-week high the previous day.
- RBNZ is likely to increase benchmark rates by 0.25% but Rate Statement will be crucial to watch amid recent dovish bias.
- One-month-old descending triangle restricts short-term moves amid sluggish MACD.
- 100-DMA acts as an extra filter towards the north.
AUD/NZD remains pressured around 1.0700 as traders await the Reserve Bank of New Zealand (RBNZ) monetary policy decision on early Wednesday.
Also read: RBNZ Interest Rate Decision Preview: Hawkish guidance yet again?
The exotic pair dropped the most in a month the previous day while reversing from a resistance line of a one-month-old descending triangle formation.
It should be noted, however, that the sluggish MACD and unimpressive RSI (14) suggest that the AUD/NZD price may defend the triangle formation, which in turn hints at a limited downside room towards the stated pattern’s support line of near 1.0670 by the press time.
That said, the quote’s sustained trading below the 100-DMA and the 61.8% Fibonacci retracement of its December 2022 to February 2023 upside keeps it on the bear’s radar.
Hence, a downside break of 1.0670 won’t hesitate to target the late 2022 low of near 1.0470. Though, the 1.0600 and 1.0500 levels may act as intermediate halts during the expected fall.
On the flip side, a clear break of the triangle’s top line, close to 1.0775 at the latest, becomes necessary for the AUD/NZD buyers to get in.
Even so, the 50% Fibonacci retracement level and 100-DMA hurdles of 1.0780 and 1.0795 in that order can challenge the pair bulls before giving them control.
AUD/NZD: Daily chart
Trend: Further downside expected
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.
