For the previous three weeks, the AUD/NZD exchange rate has been steadily declining.
Investors praised the NZD data and the prospect of a rate hike sooner than expected.
Bearish momentum is favored by momentum oscillators.
In the early Asian trading hours of Tuesday morning, the AUD/NZD currency pair suffers significant losses. The pair started out higher, but it burned out quite fast, dropping 50 pips to the intraday low of 1.0679.
The AUD/NZD currency pair is currently trading at 1.0688, down 0.27 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. For the bulls, the downward trendline from the stated level functions as a powerful barrier.
At 1.0722, the AUD/NZD crosses below the 200-day Simple Moving Average (SMA).
However, if the price remains below the intraday low, it may revisit the prior day’s low of 1.0660.
The MACD (Moving Average Convergence Divergence) indicator is currently trading below the midpoint. Price would be dragged near the 1.0650 horizontal support level if it fell.
The cross will continue to fall, aiming for lows in the 1.0622 area on June 1st. The last time the levels were witnessed was in February.
Prices would hit the first goal at the 1.0725 horizontal resistance level if they moved higher.
The market would then recuperate the previous day’s high of 1.0750, which also happens to be the downward sloping line.
The dates for the 1.0775 horizontal resistance level would open if the level was closed above on a daily basis./n
