AUD/NZD Price Analysis: Bears lookout for a break below double bottom near 1.0390
- AUD/NZD trades lower on Wednesday in the Asian session.
- Bulls attempt to defend the critical support near 1.0390.
- Momentum oscillators adopt a watch-and-the-wait approach before any aggressive bets.
AUD/NZD extends the previous day’s losses on Wednesday in the Asian session. The pair hovers in a narrow trade band.
At the time of writing, AUD/NZD is trading at 1.0397, down 0.05% for the day.
AUD/NZD daily chart
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On the daily chart, the AUD/NZD pair has been under selling pressure from the high of 1.0727 made on July 14.
The descending trendline act as a barrier for the bulls. The formation of a Doji candlestick indicates indecisiveness among traders.
A sustained move below the intraday low would bring more selling interest in the pair.
In doing so, the first lower target could be found at the previous session’s low of 1.0380.
The Moving Average Convergence Divergence (MACD) indicator trades in the oversold zone. Any downtick in the MACD would accelerate the selling momentum toward the 1.0365 horizontal support level.
Next, AUD/NZD bears would target the low of August 31 at 1.0337.
Alternatively, if price moves higher, it could test the 20-day Simple Moving Average (SMA) at 1.0435
A daily close above the bearish slop line would prompt bulls to testify the 1.0475 horizontal resistance level.
Next, the market participants will keep their eyes on the high of August 23 at 1.0533.
AUD/NZD additional levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
