- AUD/NZD snaps two days’ upside momentum on Thursday.
- Cross hangs near multi-month resistance, weakness persist below 1.0600
- Momentum oscillators indicate underlying bearish sentiment.
AUD/NZD pares part to its previous day’s gains in Thursday's Asian session. The pair opened higher, albeit fizzled out quickly to touch the low of 1.0587.
At the time of writing, AUD/NZD is trading at 1.0598, down 0.11% for the day.
AUD/NZD daily chart
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On the daily chart, the AUD/NZD pair has been trading below the 20-day Simple Moving Average (SMA) near 1.0634.
As the pair is still performing under pressure, a sustained move below the intraday low would bring more weakness.
In doing so, the first lower target is found at the 1.0575 horizontal support level.
The Moving Average Convergence Divergence (MACD) indicator trades below the midline with a bearish crossover. Any downtick in the MACD would accelerate the selling toward the 1.0560 horizontal support level.
Next, AUD/NZD bears would target the low of July 27 at 1.0540.
Alternatively, if price moves higher, it would retest the 1.0620 horizontal resistance level.
Further, a daily close above the 20-day SMA would prompt bulls to take over the previous day’s high at 1.0644.
Market Participants will keep their eyes on the 1.0680 horizontal resistance level.