- A lucid trend reversal shown by AUD/NZD has underpinned the kiwi bulls.
- The 200-EMA is acting as a major cushion for the counter.
- The RSI (14) will trigger a downside momentum if drops into the bearish range of 20.00-40.00.
The AUD/NZD pair has dropped below 1.1300 in Tokyo as strength in the downside bias has picked up. The cross is declining from the late New York session after facing severe hurdles around 1.1320. Widened divergence in the Reserve Bank of Australia (RBA)-Reserve Bank of New Zealand (RBNZ) policy is continuously impacting the aussie bulls.
On a four-hour scale, the formation of lower highs and lower lows has confirmed the trend reversal, which will compel the market participants to ‘sell rise’. The aussie bulls have sensed temporary demand from the mighty 200-period Exponential Moving Average (EMA) a few times. The cushion of 200-EMA is critical for the cross and price movement near the same will determine further direction.
A bearish crossover, represented by the 20-and 50-period EMAs at 1.1363 add to the downside filters.
Apart from that, the Relative Strength Index (RSI) (14) has shifted into the 40.00-60.00 range from the bullish range of 60.00-80.00, which indicates that kiwi bulls are not bearish anymore by the time. A breakdown of the momentum oscillator into the bearish range of 20.00-40.00 will trigger the downside momentum.
The kiwi bulls will strengthen if the cross surrenders the 50% Fibo retracement placed at 1.1240, which will drag the asset towards the round-level support at 1.1200, followed by 61.8% Fibo retracement at 1.1180.
Alternatively, a break above 23.6% Fibo retracement around 1.1375 will drive the asset towards September 30 high at 1.1440. A breach of the latter will send the asset toward September 26 high at 1.1462.
AUD/NZD four-hour chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD tests fresh tops above 1.0870 on NFP
The selling bias in the US Dollar gathers extra pace on Friday after the US economy created fewer jobs than initially estimated in February, sending EUR/USD to the area of new highs around 1.0870.
GBP/USD hovers around recent highs above 1.2900
The continuation of the downward trend in the Greenback encourages GBP/USD to maintain the trade just above the 1.2900 mark following the release of US NFP in February.
Gold remains bid above $2,900 after US Payrolls
Gold prices manage to leave behind Thursday’s pullback and revisits the area of $2,920 per troy ounce in the wake of the publication of the US labour market report in February.
White House Crypto Summit could boost adoption across financial markets: Binance exec Rachel Conlan
US President Donald Trump signed an executive order for a Strategic Bitcoin Reserve on Friday, shifting industry leaders’ focus from regulation to adoption. Within just over six weeks of his term, the President is set to host the first Crypto Summit, hosting industry giants and executives from the ecosystem.
February CPI preview: The tariff winds start to blow
Consumer price inflation came out of the gate strong in 2025, but price growth looks to have cooled somewhat in February. We estimate headline CPI rose 0.25% and the core index advanced 0.27%. The moderation in the core index is likely to reflect some giveback in a handful of categories that soared in January.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.