AUD/NZD Price Analysis: Correction likely to extend while under 1.1060
- Wild week for AUD/NZD with NZ employment and a rate hike in Australia.
- Cross about to end week with gains although far from the top.
- Correction could extend next strong support at 1.0970.
The AUD/NZD cross is about to post the highest weekly close since August 2018. The aussie peaked near 1.1200 and then pulled back. It is hovering around 1.1030/40. The close far from the top adds to some exhaustion signs, like the daily RSI turning to the downside.
The ongoing pullback could continue while the cross holds below 1.1060. A daily close above 1.1100 should increase the odds of another test of 1.1200.
The correction found support at 1.1015. A break lower should open the doors to more losses targeting 1.1000 first and below the next support at 1.0975. If AUD/NZD reaches 1.0975, a rebound seems likely, while a slide below could damage the outlook for the aussie.
On a long-term perspective, the 1.0750 area contains and uptrend line from November low and the 100-day Simple Moving Average.
After a volatile week, with employment data from New Zealand and a rate hike from the Reserve Bank of Australia, AUD/NZD is likely to calm, starting to move in smaller ranges.
AUD/NZD daily chart
Technical levels
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.
