- The Australian dollar retreats after being rejected above 1.0800.
- The 1.0850 area is again a critical resistance for the AUD / NZD.
He AUD / NZD it hit the highest level in three months on Tuesday at 1.0841. Later it failed to stay above 1.0800 and began to correct lower. The retracement continued to the 1.0760 / 65 zone, also the 38.2% Fibonacci retracement of the last bullish leg.
The rally runs into a strong resistance at the 1.0850 zone. A consolidation above is needed to clear the way for more gains, probably targeting 1.0900. The trend is still bullish, but in the short term, the rejection from 1.0800 and the pullback show some difficulties ahead. The bounce from an uptrend line at 1.0760 shows that the Aussie still has some momentum and could test levels above 1.0800 in the near term. The key for the Australian is to stay above 1.0800.
A fall below 1.0760 would signal further weakness in AUD / NZD but not a change in trend. He Key support stands at 1.0700 / 10. The rally may not be over, but for it to continue at current speed, a bounce above 1.0800 is imperative in the coming sessions.
AUD / NZD Daily Chart
Technical levels
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