- AUD/NZD opens higher in the early Asian session.
- Cross manages to hold onto the multi-month low near 1.0600.
- Momentum oscillator in oversold zone, potential reversal toward upside.
AUD/NZD price continues to consolidate within the previous day trading range on Friday. The cross successfully held onto the 1.0600 level after a single day fall of more than 100-pips on Wednesday.
At the time of writing, the AUD/NZD is trading at 1.0629, up 0.07% on the day.
AUD/NZD daily chart
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On the daily chart, the pair is gaining momentum after the formation of a hammer candlestick, which is a bullish formation. The bulls would likely extend gains toward the previous day’s high at 1.0640. The broader channel formation between 1.0600-1.0725 continues to be the playground for price action.
The Moving Average Convergence Divergence (MACD) indicator reads below the midline with stretched selling opportunities. A slight uptick in the MACD would trigger fresh buying optimism. AUD/NZD bulls would likely visit the early February levels, and touch a high of 1.0655 (February 5).
Market participants would try to push price higher to the 1.0700 horizontal resistance level next.
Alternatively, if price remained below the intraday low of 1.0605, then the downward momentum could continue with the first stop at the 1.0575 horizontal support level, followed by the February 3 low at 1.0539.
The next area of support would be the 1.0520 horizontal support level.