AUD/NZD Price Analysis: Correction to 1.0400 gains support
- Aussie gains momentum on Friday versus the kiwi after breaking 1.0335.
- AUD/NZD is testing again the 1.0350 area and a break higher should point to more gains.
The AUD/NZD is rising on Friday and is about to end the week in positive ground, having the best seven days since June; signs that the worst, at least for the moment, is behind for the aussie.
Last week, the cross bottomed at 1.0276, the lowest since March 2020. It then started to recover. The move higher found a strong barrier at 1.0350 that is being tested late on Friday. A break above should clear the way to the next target at 1.0380 and then comes 1.0400.
As long as AUD/NZD remains above 1.0300, the aussie would have support for a correction to the upside of the long-term bearish trend that is still in place. After many weeks of declines, the first positive signs for the aussie emerged, suggesting some consolidation ahead and a potential recovery, before resuming the downside.
A weekly close below 1.0300 should point to a continuation of the downside, targeting 1.0260 (2019 low) and then 1.0170.
AUD/NZD 4-hour chart
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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.
