AUD/NZD Price Analysis: Defends Thursday's low of 1.07

AUD/NZD holds support at 1.07, but bounce remains elusive.
Technical charts are calling a deeper decline toward the 200-day SMA.

Omkar Godbole FXStreet Contributor

The bears look to be in control of AUD/NZD, but so far, last week's low has held ground.

The pair is currently trading largely unchanged on the day near 1.0709, having clocked a high and low of 1.0730 and 1.0710 early today.

AUD/NZD fell nearly 1.3% last week, erasing gains seen in the preceding two weeks and signaling a resumption of the sell-off from the August high of 1.1044.

The failed bearish channel breakout seen on the daily chart indicates the path of least resistance to the downside. Key indicators like the 14-day relative strength index and the MACD histogram are also painting a bearish picture.

As such, the odds appear stacked in favor of a decline below Thursday's low of 1.07. That would expose the 200-day simple moving average (SMA) at 1.0619.

Daily chart

Trend: Bearish

Technical levels

AUD/NZD

Overview
Today last price	1.0711
Today Daily Change	-0.0011
Today Daily Change %	-0.10
Today daily open	1.0722

Trends
Daily SMA20	1.08
Daily SMA50	1.0864
Daily SMA100	1.0783
Daily SMA200	1.0622

Levels
Previous Daily High	1.0761
Previous Daily Low	1.0698
Previous Weekly High	1.087
Previous Weekly Low	1.0698
Previous Monthly High	1.0966
Previous Monthly Low	1.0712
Daily Fibonacci 38.2%	1.0722
Daily Fibonacci 61.8%	1.0737
Daily Pivot Point S1	1.0692
Daily Pivot Point S2	1.0663
Daily Pivot Point S3	1.0629
Daily Pivot Point R1	1.0756
Daily Pivot Point R2	1.079
Daily Pivot Point R3	1.0819

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

RBNZ set to pause interest-rate easing cycle as new Governor Breman faces firm inflation

The Reserve Bank of New Zealand remains on track to maintain the Official Cash Rate at 2.25% after concluding its first monetary policy meeting of this year on Wednesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.