AUD/NZD Price Analysis: RSI turns overbought near 23-month top above 1.1000
- AUD/NZD struggles to keep 1.1000 mark, the highest since September 2018.
- MACD histogram also fades the strength to join overbought RSI conditions.
- Two-week-old ascending trend line will offer immediate support.
- Bulls can aim for 2018 yearly top during the further upside.
AUD/NZD again aims to attack the multi-month peak of 1.1030, flashed Monday, while picking up the bids near 1.1005 at the start of Tuesday’s Asian session. Even so, overbought RSI conditions and failures to rise beyond 23-month high join the receding strength of MACD histogram while challenging the bulls.
As a result, the pair’s pullback to an upward sloping trend line from August 13, at 1.0930 now, becomes acceptable. Though, any more downside will highlight a five-week-long rising support line, currently around 1.0820, ahead of the July month’s peak of 1.0802.
In a case where the AUD/NZD prices slip below 1.0800 mark, a 200-bar SMA level near 1.0740 will test the bears before diverting them to July 27 bottom close to 1.0665.
Alternatively, buyers will have 1.1030 and 1.1080 as immediate upside barriers before challenging the year 2018 top near 1.1190.
During the pair’s run-up beyond 1.1190, the 1.1200 and 2017 high of 1.1300 will be in the spotlight.
AUD/NZD four-hour chart
Trend: Pullback 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.
