AUD/NZD Price Analysis: More upside likely above 1.0400
- AUD/NZD turns slightly negative after it claims 1.0400 on Tuesday.
- Bulls remain hopeful above psychological 1.0400 mark .
- Momentum oscillator holds onto the overbought zone with bullish bias.
AUD/NZD prints fresh daily gains ahead of the Australian Retail Sales data on Tuesday. The pair touched the 1.0400 mark and immediately slids below following the upside pressure there. At the time of writing, AUD/NZD is trading at 1.0378, down 0.04% for the day.
AUD/NZD daily chart
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On the daily chart, the AUD/NZD pair bucked up the prevailing short-term downside trend, which extends from the July 13 high at 1.0753. The consolidation in price began on September 13 and the cross-currency pair formed a rounding bottom technical pattern.
The descending trendline from the high of July 13 acts as a resistance for the bulls. If the price breaks the bearish sloping line, it could move back to the 1.0450 horizontal resistance level, which also coincides with the 50-day Simple Moving Average (SMA) .
A daily close above the 50-day SMA could mean the continuation of upside momentum toward the 1.0500 horizontal resistance level. The Moving Average Convergence Divergence (MACD) indicator trades in the oversold zone. Any uptick in the MACD would accelerate the buying pressure toward the high made on August 3 at 1.0592.
Alternatively, if the price moves lower, it could retest the 1.0350 horizontal support level followed by Friday’s low at 1.0305. Next, AUD/NZD bears would testify the low made on September 16 at 1.0278.
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.
