AUD/NZD still struggling to hold above 1.0700

AUD/NZD is still struggling to rally sustainably above the 1.0700 level.
A notable 50% Fib stand to block the price action at 1.0730, while the 38.2% Fib and 21DMA at 1.0650 offers support.

Joel Frank Independent Analyst

AUD/NZD made it back to close to its highest levels in over a month at 1.0720 on Wednesday, but has since slipped back below 1.0700, a level it struggled to rally substantially above on Wednesday. However, recent price action suggests the pair continue to squeeze ever more tightly in this area, implying that a more convincing break above 1.0700 and back to fresh multi-week highs above 1.0720 is growing in likelihood.

A break above this area would open the door to a test of the 50% Fibonacci retracement level from the mid-August 2020 high at above 1.10 to the early December low of just above 1.04, which resides at 1.0730. The next area of resistance above this would be the 6 October low/5 November high at 1.0760.

If the bears prevail, a move back towards the 38.2% Fibonacci retracement level from the mid-August 2020 high at above 1.10 to the early December low of just above 1.04, which resides just above 1.0650 would be likely. This area ought to offer solid support given that the 21-day moving average also sits around here.

AUD/NZD daily chart

Author

Joel Frank

Independent Analyst

Joel Frank is an economics graduate from the University of Birmingham and has worked as a full-time financial market analyst since 2018, specialising in the coverage of how developments in the global economy impact financial asset

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