AUDNZD Price Analysis: Shooting Star below 200-DMA indicates more weakness ahead


  • A Shooting Star formation indicates the availability of significant sellers at elevated levels.
  • An oscillating below the 200-EMA indicates that the long-term trend is bearish.
  • The RSI (14) is trading in a bearish range, which indicates that the downside momentum is active.

The AUDNZD pair has witnessed a steep fall after facing barricades around 1.0930 in the Tokyo session. The cross has turned sideways after a vertical fall from Wednesday’s high at 1.0970 and is expected to display more weakness ahead.

In the Tokyo session, the University of Melbourne released the Australian Consumer Inflation Expectations at 6.0% against the projections of 5.7%. It seems that a slowdown in the rate hike pace by the Reserve Bank of Australia (RBA) has resulted in higher short-term inflation expectations. Investors are worried that the RBA would remain behind average global interest rates.

On a daily scale, the asset formed a Shooting Star candlestick pattern on Wednesday, which indicates that the upside is capped and investors are using pullback for initiating shorts. The cross is oscillating in an Inverted Flag chart pattern, which results in sheer downside after a breakdown of the consolidation.

The pair is auctioning below the mighty 200-period Exponential Moving Average (EMA) at 1.0090, which indicates that the major trend is bearish.

Also, the Relative Strength Index (RSI) (14) is oscillating in a bearish range of 20.00-40.00, which indicates that the downside momentum is intact.

Going forward, a downside break of Wednesday’s low at 1.0906 will activate the Shooting Star formation and will drag the asset towards Friday’s low at 1.0877, followed by August 25 low at 1.0825.

On the contrary, the Aussie bulls will regain strength if the cross surpasses Wednesday’s high at 1.0971. This will drive the asset toward the psychological resistance of 1.1000 and August 19 low at 1.1046.

AUDNZD daily chart

AUD/NZD

Overview
Today last price 1.0928
Today Daily Change 0.0003
Today Daily Change % 0.03
Today daily open 1.0925
 
Trends
Daily SMA20 1.1033
Daily SMA50 1.1182
Daily SMA100 1.1133
Daily SMA200 1.1008
 
Levels
Previous Daily High 1.0971
Previous Daily Low 1.0906
Previous Weekly High 1.1057
Previous Weekly Low 1.0877
Previous Monthly High 1.1443
Previous Monthly Low 1.0992
Daily Fibonacci 38.2% 1.0946
Daily Fibonacci 61.8% 1.0931
Daily Pivot Point S1 1.0897
Daily Pivot Point S2 1.0869
Daily Pivot Point S3 1.0832
Daily Pivot Point R1 1.0962
Daily Pivot Point R2 1.0999
Daily Pivot Point R3 1.1028

 

 

 

 

 

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