AUD/NZD Price Analysis: Surrenders 50% Fibo retracement at around 1.1240
- A drop below 50% Fibo retracement and the 200-EMA has titled the bias towards the kiwi bulls.
- The RSI (14) has shifted into the bearish range of 20.00-40.00, which indicates more weakness ahead.
- The cross will be exposed to hit 1.1083 if it slips below Tuesday’s low at around 1.1200.
The AUD/NZD pair has turned sideways in the Asian session after a less-confident pullback from 1.1200. Broadly, the asset is declining for the past two weeks after picking significant offers from 1.1470. The upside seems capped around 1.1240 due to a decline in Australian Westpac Consumer Confidence data.
On a four-hour scale, the cross has slipped below the 50% Fibonacci retracement (placed from August 17 low at 1.0990 to September’s high at 1.1491) at 1.1240. It is worth noting that the 200-period Exponential Moving Average (EMA) at 1.1275 has acted as a major cushion for the aussie bulls. The cross has surrendered the support of 200-EMA and has turned extremely bearish.
Adding to that, the Relative Strength Index (RSI) (14) has shifted into the bearish range of 20.00-40.00, which signals more downside in the asset going further.
A further decline below Tuesday’s low at 1.1197 will drag the asset towards September 8 low at 1.1115 followed by August 16 high at 1.1083.
Alternatively, a break above 23.6% Fibo retracement around 1.1375 will drive the asset towards September 30 high at 1.1440. A breach of the latter will send the asset toward September 26 high at 1.1462.
AUD/NZD four-hour chart
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Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
