The AUD/NZD has been bullish since making a low on the year at 1.0020. It pivoted from a support at 1.0035 towards the end of April and reached 1.0890 by mid-May.
For the past couple of weeks, we saw the pair in a consolidation range roughly between 1.0850 and 1.07. At the end of last week, AUD/NZD broke below this range support as well as a rising trendline from that 1.0035 pivot.
The breakout is not very clear yet as price hovers above the 100-period SMA. Let’s see if price can hold under 1.0760, or the combination of 50-period SMA a falling trendline from last week. Inability to hold below these resistance factors would signal a false break and revive the prevailing uptrend with pressure towards the 1.0850-1.0890 resistance area.
To the downside, the 1.0520-10550 support/resistance pivot area would be a first, conservative target. The 1.0315 support/resistance pivot would be the next, more aggressive bearish outlook from the current breakout signal.
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