Since reaching a high of 1.0816 on June 11, the AUD/NZD has been steadily declining.
Lower levels are expected when the pair falls below the 200-day SMA.
Bearish momentum was still favored by momentum oscillators.
During Wednesday’s Asian trading hours, the AUD/NZD currency pair lost ground. In a 20-pip move, the pair opened higher but burned out relatively quickly, touching the intraday low of 1.0673.
The AUD/NZD currency pair is currently trading at 1.0680, down 0.14 percent on the day.
The AUD/NZD pair has been under selling pressure on the daily chart since achieving a high of 1.0816 on June 11.
In the last session, the AUD/NZD fell below the 200-day Simple Moving Average (SMA) of 1.0722.
However, if the price remains below the intraday low, it may revisit the prior day’s low in the 1.0660 level.
With a bearish crossover, the Moving Average Convergence Divergence (MACD) indicator trades below the midline. Price would be dragged toward the 1.0645 horizontal support level if the MACD fell below zero.
Bears in the AUD/NZD would then go for the June 1 low of 1.0622.
If price continues higher, it will first test the critical psychological level of 1.0700, then the previous day’s high of 1.0730.
A daily close above the 200-day SMA would also signal a reversal of the previous downward trend. The bulls are attempting to challenge the horizontal resistance level of 1.0755./n
