The AUD/NZD pair has eroded its 2020-2021 uptrend and is swiftly heading back down towards the February low at 1.0540 and the December 2020 low at 1.0412, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, reports.
AUD/NZD is bearish while below the May highs at 1.0810/24
“AUD/NZD’s sudden drop has practically taken it back to the March low at 1.0626, a slip through which will have the February trough at 1.0540 in its sights. Further down the December low can be spotted at 1.0412.”
“In view of the current decline, we changed our forecast to a bearish one and will retain it while the cross remains below the May highs at 1.0810/24 on a daily chart closing basis.”
“Further resistance can be seen between the January, February and April 19 highs at 1.0830/52 as well as at the April high at 1.0886 and the March high at 1.0948. Above it the 2017-2021 downtrend line can be seen at 1.0977 and the August 2020 high at 1.1045 as well as the August 2018 peak at 1.1180.”
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