AUD/NZD Signals Further Downside with the Historic Low in Sight

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AUD/NZD Signals Further Downside with the Historic Low in Sight

AUD/NZD made a historic low at the beginning of year when it fell to 1.0353. After a correction up to 1.0795, the pair revived its downtrend and is now approaching that low again. Let’s take a look at the charts to assess whether there are more legs in AUD/NZD’s decline.

The daily chart reflects a bearish market. After a bounce from the record low of 1.0353 to 1.0795, price has broken below the pennant pattern, signaling bearish continuation. When we look at the 1H chart, we also see a persistent downtrend. The RSI held below 60, and shows that the bearish momentum is intact. Also, a negative reversal signal suggests further downside, putting the 1.0384 low of the week in sight, with risk of breaking towards the 1.0353 low.

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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.