- AUD/NZD trades cautiously on Monday in the Asian trading hours.
- Upside momentum recedes upon reaching 1.0550.
- Momentum oscillators hold onto the overbought zone warn caution.
AUD/NZD kickstarts the fresh trading week on a higher note with a cautious tone. The pair opened higher but failed to capitalize on the gains. At the time of writing, AUD/NZD is trading at 1.0540, up 0.08% for the day.
AUD/NZD daily chart
On the daily chart, the AUD/NZD pair has been rising inside the upward trading channel since September 16. Further to maintain the current momentum, the pair is required to give a daily closing above the 100-day Simple Moving Average (SMA) at 1.0556.
Having said that, if the price breaks the intraday low, it would test Thursday’s low of 1.0510. Now, a break beneath the ascending trendline of the mentioned channel would prompt bears to capture the 1.0450 horizontal support level. Overbought Moving Average Convergence (MACD) and the Relative Strength Index (RSI) suggest the possibility of the key 1.0400 level.
Alternatively, if the price moves higher, it could retest the 1.0600 horizontal resistance level followed by the high made on July 16 at 1.0653. Next, AUD/NZD bulls would testify to the 1.0700 horizontal support level.