- AUD/NZD has been moving in continuous downward momentum for the past three weeks.
- Investors cheered NZD data and sooner-than-expected rate hike expectations.
- Momentum oscillators tilt in favor of bearish momentum.
AUD/NZD accumulates substantial losses on Tuesday morning in the initial Asian trading hours. The pair opened higher, albeit fizzled out rather than quickly to touch the intraday low of 1.0679 in a 50 pips movement.
At the time of writing, AUD/NZD is trading at 1.0688, down 0.27% for the day.
AUD/NZD daily chart
-637611243941332473.png)
On the daily chart, after touching the high of 1.0816 on June 11, the AUD/NZD pair has been under selling pressure. The downward trendline from the mentioned level acts as a strong barrier for the bulls.
AUD/NZD slips below the 200-day Simple Moving Average (SMA) at 1.0722.
That said, if price sustained below the intraday low, it could retest the previous day’s low at 1.0660.
The Moving Average Convergence Divergence (MACD) indicator trades below the midline. Any downtick would drag price toward the 1.0650 horizontal support level.
The cross will accelerate the downward trend toward June 1 lows in the 1.0622 region. The levels are last seen in February.
On moving higher, prices would encounter the first target at the 1.0725 horizontal resistance level.
Next, the market participants would recoup the previous day high at 1.0750, which also coincides with the downward sloping line.
A daily close above the level would open the dates for the 1.0775 horizontal resistance level.