- AUD/NZD fell from yearly highs following the RBA’s dovish monetary policy decision.
- AUD/NZD Technical Outlook: Bullish bias but facing strong resistance around 1.0755.
On Tuesday, the AUD/NZD trimmed some of its gains on Monday during the American session after a “more dovish” than expected monetary policy statement issued by the Reserve Bank of Australia. (RBA). At the time of writing, it trades at 1.0722, down 0.15% on the day. Market sentiment has improved, with US stock indices posting gains, except for the Nasdaq Composite.
AUD/NZD Price Forecast: Technical Outlook
In the overnight session, the AUD/NZD fell from 1.0750 to 1.0696, courtesy of a dovish monetary policy decision from the RBA. Although it was in line with the forecasts that ended its QE program, the language of the central bank was not as aggressive as estimated. However, the move down stalled at the confluence of the 50 and 100 hourly Simple Moving Averages (SMAs) around the 1.0702-05 region.
That said, the AUD/NZD is biased to the upside. The daily moving averages (DMA) reside below the price. Additionally, the price action of the past nine days shows that the spot price has ranged midway between the top and the center line of the Pitchfork channel, which charts price action since November 2021.
On the upside, AUD/NZD’s first resistance would be the yearly high at 1.0757. A break of the latter would expose the upper trend line of the Pitchfork channel around the 1.0760-70 area, followed by 1.0800.
On the contrary, the first support would be the midpoint, between the top and the central channel of Pitchfork around 1.0690. A break below the aforementioned would expose the central trend line of the channel around 1.0630-50, followed by the Jan 10 daily low at 1.0575.
Additional technical levels
Source: Fx Street
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