- AUD/NZD pair has sensed selling pressure after failing to kiss the 1.1000 resistance.
- Six-week-old upward-sloping trendline placed from 1.0471 will continue to provide support to the Australian Dollar.
- The 20-period EMA has not been tested yet, which indicates that the upside bias is intact.
The AUD/NZD pair has sensed selling pressure after failing to capture the crucial resistance of 1.1000. The cross has dropped to near 1.0960 and is expected to remain sideways amid the absence of the potential trigger.
It seems that the weaker-than-anticipated New Zealand Employment (Q4) data didn’t result in much harm to the kiwi dollar. The Employment Change dropped to 0.2% from the expectations of 0.3% and the former release of 1.3%. While the Unemployment Rate has increased to 3.4% from the consensus and the prior release of 3.3%.
AUD/NZD witnessed a responsive selling move after testing a two-month high plotted at 1.0986. The struggle of the Australian Dollar in stretching its upside above a two-month high indicates the absence of a critical trigger. Six-week-old upward-sloping trendline placed from 1.0471 will continue to provide support to the Australian Dollar.
The 20-period Exponential Moving Average (EMA) at 1.0947 has not been tested yet, which indicates that the upside bias is intact.
Also, the Relative Strength Index (RSI) (14) has yet not surrendered oscillation in the bullish range of 60.00-80.00, which indicates that the upside momentum is still active.
For a fresh upside, the cross needs to surpass a two-month high at 1.0986 confidently, which will drive the asset toward November 11 high at 1.1045 followed by October 28 high at 1.1081.
Alternatively, a breakdown below Wednesday’s low at 1.0962 will drag the cross toward January 30 low around 1.0900. A slippage below the latter will extend the downside toward January 4 high at 1.0875.
AUD/NZD four-hour chart
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