AUD/NZD Price Analysis: Bears in control below 1.0700 on Lowe's dovish outlook
- AUD/NZD has been moving in continuous downward momentum since it made a high of 1.0816 on June 11.
- Cross hangs near multi-month support, weakness persist below 1.0670
- Momentum oscillators indicate underlying bearish sentiment.
AUD/NZD pares part to its previous day’s loss in Thursday's Asian session. The pair struggles after the Reserve Bank of Australia Governor Philip Lowe said virus outbreak and extended lockdowns made economic recovery uncertain. The inflation is not expected to come at the central's banks target range before 2024.
At the time of writing, AUD/NZD is trading at 1.0675, up 0.11% for the day.
AUD/NZD daily chart
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On the daily chart, the AUD/NZD pair has been trading below the 50-day Simple Moving Average (SMA) near 1.0750 since June 30.
As the pair is still performing under pressure, a sustained move below the intraday low would bring more weakness.
In doing so, the first lower target is found at the 1.0645 horizontal support level.
The Moving Average Convergence Divergence (MACD) indicator trades below the midline with a bearish crossover. Any downtick in the MACD would accelerate the selling toward May 27 low at 1.0599.
Next, AUD/NZD bears would target the low of February 4 at 1.0564.
Alternatively, if price moves higher, it would retest the 1.0697, high made a day earlier.
Further, above the 50% Fibonacci retracement level, which extends from the low of 1.0599 would invite bulls to touch the high made on July 6 at 1.0730.
AUD/NZD additional levels
Market Participants will keep their eyes on the 1.0750 horizontal resistance level.
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
