- AUD/NZD bounces off intraday low but struggles to reject key support break.
- Bearish MACD signals, sustained trading below 20-DMA keep sellers hopeful.
- Bulls need validation from three-week-old resistance line, 1.0830 appears a tough nut to crack for sellers.
AUD/NZD picks up bids to consolidate intraday losses around 1.0955 during Friday’s Asian session.
In doing so, the cross-currency pair marks another bounce off the 50-DMA. However, the clear downbeat break of the previous support line from mid-March, around 1.0975 by the press time, keeps the bears hopeful.
Also favoring the bearish bias is the MACD conditions and successful trading below the 20-DMA.
That said, the quote’s further weakness needs validation from the 50-DMA level of 1.0920 before declining towards the 1.0830 key support, including the 61.8% Fibonacci retracement (Fibo.) of March-May upside.
On the contrary, an upside break of the support-turned-resistance line, near 1.0975, will direct the AUD/NZD prices towards the 20-DMA level of 1.1015.
However, the pair buyers remain unconvinced until the quote stays below a downward sloping resistance line from early May, close to 1.1065.
AUD/NZD: Daily chart
Trend: Further weakness expected
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