AUD/NZD Price Analysis: Keeps bounce off 100-SMA inside bull flag
- AUD/NZD stays mildly bid, up for the second consecutive day inside a bullish chart pattern.
- Sustained trading above the key moving averages, firmer RSI keep buyers hopeful.
- 200-SMA adds to the downside filters, bulls can test late 2017 peak on flag confirmation.
AUD/NZD extends the previous day’s bounce off short-term key SMA while printing mild gains around 1.1010 during Friday’s Asian session. In doing so, the cross-currency pair picks up bids inside a thee-week-old bull flag.
In addition to the bounce off the 100-SMA, the firmer RSI and successful trading above the 200-SMA also keep AUD/NZD buyers hopeful.
However, a clear upside break of 1.1050 becomes necessary to confirm the bullish chart pattern suggesting a rally towards the late 2017 peak near 1.1300.
It’s worth noting that the latest high around 1.1195 will act as an intermediate halt during the anticipated run-up.
Alternatively, 100-SMA and the stated flag’s lower line, respectively around 1.0675 and 1.0950, limit the short-term downside of the pair.
Following that, the 200-SMA level of 1.0930 will act as the last defense of the AUD/NZD buyers before challenging the late April’s low near 1.0820.
AUD/NZD: Daily chart
Trend: Further upside expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
