- AUD/NZD continues to move in a range bound manner on Thursday.
- Pair envisioned more losses if price decisively breaks 1.0740.
- Momentum oscillator holds onto the positive territory with a neutral outlook.
AUD/NZD trades on a lower note in the initial Asian session. The pair continues to skid lower in the previous six sessions while holding the support near the 1.0740.
At the time of writing, AUD/NZD is trading at 1.0746, down 0.07% for the day.
AUD/NZD daily chart
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On the daily chart, the AUD/NZD cross has been consolidating near the 1.0800 mark with multiple top formations from the previous week. The ascending trendline from the low of 1.0599 acts as a defensive for the bulls.
A sustained move below the 20-day Simple Moving Average (SMA) at 1.0740 could push AUD/NZD lower toward the 1.0720 horizontal support line, which also coincides with the bullish sloping line.
A break of the above trendline would invite fresh round selling opportunities for AUD/NZD bears.
In doing so, the bears would aim for the low of June 4 at 1.0702.
The Moving Average Convergence Divergence(MACD)indicator reads above midline with a neutral outlook. Any downtick in the MACD could bring the 1.0675 horizontal support level back into action.
Alternatively, if price moves higher then, it could test the previous day’s high at 1.0786.
Market participants would then aim for the 1.0820 horizontal resistance level followed by May 15 high at 1.0850.