AUD/NZD technical analysis: Decline below 200-HMA highlights a weeklong support-line

Break of 200-HMA signal further downside to near-term support-line.
Oversold RSI question bears.

Anil Panchal FXStreet

The downbeat tone of the RBA minutes and sluggish house price data from Australia dragged the AUD/NZD pair to 1.0530, below 200-hour moving average (HMA), during early Tuesday.

An upward sloping trend-line since May 10, at 1.0515 grabs sellers’ attention, for now, a break of which can push them towards current month low near 1.0495.

Should there be increased selling pressure past-1.0495, March 27 top near 1.0450 could become bears’ favorite.

Meanwhile, 21-HMA near 1.0555 seems the adjacent resistance for the pair traders to watch in case of a pullback.

If prices manage to clear 1.0555 upside barrier, 61.8% Fibonacci retracement of late-May to early June declines near 1.0580 and last week's high surrounding 1.0590 could come back on the chart.

It is worth noting that the 14-bar relative strength index (RSI) is into the oversold territory indicating brighter chances of a U-turn.

AUD/NZD hourly chart

Trend: Bearish

1. R3 1.0637
2. R2 1.0614
3. R1 1.0583
PP 1.0561
1. S1 1.053
2. S2 1.0507
3. S3 1.0477

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.

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