AUD/NZD Price Analysis: 50-day EMA, resistance-turned-support line limit immediate downside
- AUD/NZD fails to stretch bounce from 1.0666 beyond 1.0725.
- The key support confluence, normal RSI favor bulls targeting monthly high.
- Sellers may aim for 200-day EMA during the fresh downside.
AUD/NZD flirts with 1.0700 during the pre-Tokyo open Asian trading on Tuesday. In doing so, the pair respects 50-day EMA and a downward sloping trend line from June 02 as the key support.
With the RSI conditions being normal, the latest bounce from the key 1.0660 support confluence is likely to diver the buyers towards the monthly high of 1.0757. However, the pair’s further upside will be challenged by late-June top surrounding 1.0790 and 1.0800 round-figures.
Should bulls refrain from respecting 1.0800, the previous month’s peak near 1.0880 will be in the spotlight.
Alternatively, bears will look for entries below 1.0660 while targeting 1.0625 and 1.0600 as the following rest-points.
Though, 200-day EMA and the monthly bottom, respectively around 1.0575 and 1.0555, could question the pair’s further downside.
AUD/NZD daily chart
Trend: Pullback expected