- AUD/NZD is consolidating near 1.0735 in the Asian session.
- The risks appear to the upside for the cross.
- Oversold momentum oscillators throw cautions for aggressive directional bet.
The AUD/NZD cross is struggling to hold onto the positive trajectory in the Asian session.
At the time of writing, AUD/NZD is trading at 1.0733 down 0.01% on the day.
AUD/NZD hourly chart
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On the hourly chart, the cross heads towards the south, with mild losses, however, the downside seems limited. However, the occurrence of multiple supports near the 1.0730 mark suggests that the undertone still remains bullish. If prices sustain above1.0735, then a retest of the 1.0750 and the 1.0770 horizontal resistance zone would occur. This will negate the downward pressure on prices and would eventually push them higher toward Tuesday’s high of 1.0824.
The Moving Average Convergence Divergence (MACD) indicator is in an oversold zone, with stretched selling opportunities. Any downtick will continue to exert pressure on prices, where it would first meet with Wednesday’s low at 1.0720 followed by 1.0698(April 30). Bears will next keep their eyes on early March lows at 1.0671 (March 2).