AUD/NZD Price Analysis: Looks for more downside below 50-day SMA
- AUD/NZD continues to move downside with renewed selling pressure.
- More losses possible for the pair if price decisively breaks 1.0730.
- Momentum oscillator turns negative caution for aggressive bids.
AUD/NZD prints substantial losses on Tuesday morning in the Asian session. The pair opened on a higher note, albeit fizzled out quickly and touched the low of 1.0733.
As of writing, AUD/NZD is trading at 1.0735, down 0.28% for the day.
AUD/NZD daily chart
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On the daily chart, the AUD/NZD currency pair has been facing upside pressure near the 1.0800 key psychological mark. The descending trendline from the high of 1.0948 acts as a strong resistance barrier for the pair.
if price breaks the session’s low at 1.0731, then a potential downside toward the low of June 25 at 1.0720 can not be ruled out. This also coincides with the breaking of a 1.0725 critical level, where multiple support formations emerge.
In doing so, there is plenty of room for the pair to test the previous lower levels. The first in line would be the 1.0700 horizontal support level followed by the June 2 low in the vicinity of the 1.0650 area.
Alternatively, the 14-day Relative Strength Index (RSI) indicator reads at 50. Any uptick in the RSI could bring buyers back into action.
AUD/NZD bulls would target the 50-day Simple Moving Average (SMA) at 1.0750 while keeping an eye on the earlier day’s high at 1.0771.
The next area of resistance could be located at June 11 high at 1.0816.
AUD/NZD additional levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
