AUD/NZD technical analysis: MACD histogram points to weakening of bearish momentum


  • AUD/NZD's daily chart indicators are reporting oversold conditions. 
  • A consolidation or a minor bounce to the stiff 50-hour average resistance could be in the offing.  

AUD/NZD is currently trading at1.0488, representing a 0.12% drop on the day, having hit a session low of 1.0475 soon before press time.

The pair is flashing red as Australia's gross domestic product (GDP) growth slowed to 0.4% quarter-on-quarter in the September quarter from the previous quarter's 0.5% reading. The GDP figure has confirmed that the Reserve Bank of Australia will have to provide extra stimulus in 2020.

Therefore, the path of least resistance for the AUD is to the downside.

That said, the AUD/NZD pair may witness consolidation or minor bounce before the deeper drop, as the widely-tracked MACD histogram has printed shallow bars below the zero line over the last two weeks, indicating seller exhaustion.

Further, the 14-day relative strength index is also reporting oversold conditions with a below-30 print.

That said, the immediate bearish case would weaken only above the 100-hour average, currently 1.0518. That average has reversed gains consistently since Nov. 12.

Daily chart

Trend: Bear exhaustion

Technical levels

AUD/NZD

Overview
Today last price 1.0489
Today Daily Change -0.0011
Today Daily Change % -0.10
Today daily open 1.05
 
Trends
Daily SMA20 1.0642
Daily SMA50 1.0697
Daily SMA100 1.0634
Daily SMA200 1.0573
 
Levels
Previous Daily High 1.0521
Previous Daily Low 1.0476
Previous Weekly High 1.0602
Previous Weekly Low 1.0521
Previous Monthly High 1.0867
Previous Monthly Low 1.0521
Daily Fibonacci 38.2% 1.0504
Daily Fibonacci 61.8% 1.0493
Daily Pivot Point S1 1.0477
Daily Pivot Point S2 1.0454
Daily Pivot Point S3 1.0433
Daily Pivot Point R1 1.0522
Daily Pivot Point R2 1.0543
Daily Pivot Point R3 1.0566

 

 

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