- AUD/NZD struggles for clear directions after posting a trend-changing candlestick.
- Downbeat expectations from Australia Monthly CPI, 21-DMA hurdle challenge recovery moves.
- Nearly four-month-old horizontal support appears a tough nut to crack for the bears.
AUD/NZD portrays the pre-data anxiety by making rounds to 1.0700 during early Wednesday, waiting for Monthly Consumer Price Index (CPI).
In addition to the cautious mood ahead of the key Aussie data, mixed technical signals also test the pair traders.
That said, the quote’s sustained bounces off a horizontal area comprising multiple levels marked since early December 2022 join bullish MACD signals to tease buyers. However, the 21-DMA and the previous day’s Doji candlestick challenge the upside momentum. Furthermore, the steadily rising RSI (14) adds strength to the recovery.
It should be noted that a clear break of the 21-DMA hurdle, around 1.0760 by the press time, could defy the bearish candlestick and can propel the price towards the previous weekly top of 1.0805.
On the contrary, a downside break of the 1.0660-75 zone won’t hesitate to revisit the late December lows near 1.0625.
It’s worth observing that the AUD/NZD pair’s upside past 1.0805 appears difficult while the weakness below 1.0625 has a comparatively smoother road to accepting bears.
As a result, the AUD/NZD pair is likely to decline further if backed by the downbeat Aussie inflation data, expected 7.1% YoY for February versus 7.4% prior.
Also read: AUD/USD bulls attack 0.6700 with eyes on Australia inflation data, banking news
AUD/NZD: Daily chart
Trend: Further downside expected
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