Aussie Dollar vs New Kiwi Dollar Technical Forecast
- Bull’s momentum has eased, but the bias higher
- AUD/NZD outlook remains positive while above 1.0765
A Multi-Week High
Last week, AUD/NZD hit a four-week high of 1.0754. However, the price retreated after as some bulls seemed to cut back. Ultimately, a weekly candlestick closed modestly in the green with a 0.2% gain.
Alongside that, the Relative Strength Index (RSI) fell from 62 to 54 highlighting that bulls were losing momentum.
AUD/NZD DAILY PRICE CHART (Sep 25, 2018 – July 30, 2020) Zoomed Out
AUD/NZD DAILY PRICE CHART (MAy 23 – July 29, 2020) Zoomed IN
This week, AUD/NZD closed above the 50-day moving average indicating a shift in favor of bull’s control. As a result, the price remained above this indicator then climbed to the current 1.0765 – 1.0824. Today, the pair has printed an eight-week high at 1.0801.
A daily close above the high end of the current zone could encourage bulls to rally the price towards the monthly resistance level at 1.0881 (the June 2 high).
On the other hand, a daily close below the low end of the current zone may guide AUDNZD’s fall towards the weekly support at 1.0692 ( the July 15 high).
AUD/NZD Four-Hour PRICE CHART (JuNE 29 – July 29, 2020)
On July 21, AUD/NZD traded above the downward sloping trendline resistance originating from the June 30 high at 1.0718 and held after indicating that bullish momentum remained intact.
To conclude, while the bullish bias is still in place a break below the upward trendline support originating from the July 10 low at 1.0566 would reflect a weaker bullish sentiment. Therefore, a break below 1.0748 could send AUD/NZD towards 1.0699, while a break above 1.0840 may trigger a rally towards 1.0870. As such, the support and resistance levels underscored on the four-hour chart should be kept in focus.
Written By: Mahmoud Alkudsi
Please feel free to contact me on Twitter: @Malkudsi
