- The bias continues to point lower for the AUD / NZD.
- Price testing dynamic support at 55 SMA.
- Key event ahead: Reserve Bank of Australia meeting on Tuesday.
The AUD / NZD it continues to decline after touching 1.0843 two weeks ago, the highest level since mid-October. After breaking below 1.0800, it accelerated the decline. The pullback continued until it found support on Friday at 1.0630 / 50, where the 55-day simple moving average is located.
Technical indicators on the daily chart point to more weakness ahead. Kiwi needs a firm break below the 1.0620 area to clear the way for further losses. The next target could be seen at 1.0570 with intermediate support at 1.0600.
After falling in eight of the last nine trading days, a consolidation appears overdue. Still, the outcome of the RBA meeting could trigger sharp moves in the Australian.
A consolidation could occur between the 55-day SMA and the 20-day SMA which sits at 1.0735 / 40, also horizontal resistance. A daily close above 1.0740 would strengthen the Australian dollar.
Daily chart
Technical Levels
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