AUD/NZD Price Analysis: Bears attack five-month-old support on NZ Q2 CPI


  • AUD/NZD drops to fresh low since early February on strong NZ inflation data.
  • New Zealand Q2 CPI crossed market consensus and previous readouts in Q2.
  • Bears await daily closing below medium-term support line, 200-DMA becomes the key nearby resistance.
  • Oversold RSI near key support backs a bounce but bulls aren’t invited.

AUD/NZD remains on the back foot for the third consecutive day, after bouncing off February lows, down 0.25% intraday around 1.0595 during the early Asian session on Friday.

Strong points of New Zealand’s (NZ) second-quarter (Q2) Consumer Price Index (CPI) data seem to have drowned pair prices as the figures not only crossed upbeat market consensus but also rose past the Reserve Bank of New Zealand’s (RBNZ) forecasts.

Read: Breaking: NZ CPI sends Kiwi nearly 50 pips higher

It should, however, be noted that the oversold RSI conditions and a falling trend line from February 26, near 1.0575, may offer consolidation to the AUD/NZD prices towards revisiting the 1.0655-60 resistance area. Though, any further upside will be tested by the 200-DMA level of 1.0716.

Alternatively, a daily closing below 1.0575 will aim for February’s low, also the yearly bottom, surrounding 1.0540.

In a case where AUD/NZD bears keep ignoring RSI conditions and refrain from bouncing off 1.0540, December 2020 trough close to 1.0410 will be on their radar.

AUD/NZD: Daily Chart

Trend: Corrective pullback expected

Additional important levels

Overview
Today last price 1.0608
Today Daily Change -0.0031
Today Daily Change % -0.29%
Today daily open 1.0639
 
Trends
Daily SMA20 1.0727
Daily SMA50 1.0737
Daily SMA100 1.0766
Daily SMA200 1.0719
 
Levels
Previous Daily High 1.0727
Previous Daily Low 1.0617
Previous Weekly High 1.075
Previous Weekly Low 1.0617
Previous Monthly High 1.0817
Previous Monthly Low 1.0622
Daily Fibonacci 38.2% 1.0659
Daily Fibonacci 61.8% 1.0685
Daily Pivot Point S1 1.0595
Daily Pivot Point S2 1.0551
Daily Pivot Point S3 1.0485
Daily Pivot Point R1 1.0705
Daily Pivot Point R2 1.0771
Daily Pivot Point R3 1.0815

 

 

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