AUD/NZD Price Analysis: Buyers approach 1.1200 inside bearish channel after RBA
|- AUD/NZD picks up bids after the RBA’s 0.50% rate hike, extends the previous day’s bounce off two-week low.
- Impending bull cross on MACD, rebound from the 100-SMA also keep buyers hopeful.
- Sellers can aim for channel’s support, 61.8% Fibonacci retracement level during fresh entry.
AUD/NZD adds to the daily gains around 1.1155 after the Reserve Bank of Australia (RBA) announced the fourth rate increase of 0.50% heading into Tuesday’s European session.
Also read: RBA: Board is committed to doing what is necessary to ensure inflation returns to target
In doing so, the cross-currency pair bounces off the 100-SMA while staying inside a weekly bearish channel.
In addition to the rebound from the 100-SMA, at 1.1145 by the press time, the looming bull cross by the MACD line also signal the further upside of the quote.
However, the 20-SMA guards the pair’s immediate advances near the 1.1165 level before directing AUD/NZD buyers towards the stated channel’s upper line, at 1.1180 as we write.
Should the upside momentum cross the 1.1180 resistance, the odds of its run-up towards the previous monthly high near 1.1255 can’t be ignored.
Alternatively, a clear downside break of the 100-SMA surrounding 1.1145 could drag the quote to the 50% Fibonacci retracement of August 17-26 upside, near 1.1122.
Following that, the lower line of the aforementioned channel and the 61.8% Fibonacci retracement level could entertain the AUD/NZD bears respectively around 1.1110 and 1.1090.
Overall, AUD/NZD is likely to rise further but the upside break of 1.1180 appears necessary.
AUD/NZD: Four-hour chart
Trend: Limited upside expected
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