The AUD/NZD has been making fresh record lows since the beginning of the year when it dipped below 1.04. It remains in the mode of digging new lows.
The 4H chart shows that after a bullish correction in the beginning of March, AUD/NZD has returned to the bearish mode. Note price holding under the cluster of 200-, 100-, and 50-period simple moving averages and the fact that the RSI has been tagging below 30 and holding below 60, which reflects maintenance of the bearish momentum.
The latest sign of bearish continuation is the break below last week’s flag, or pennant consolidation pattern. This was a strong breakout that brought AUD/NZD into fresh lows once again. As we start the new week, we should expect further decline from a technical perspective. If there is a pullback, expect resistance in the 1.0280-1.03 handle, with downside target at least down to the 1.02 handle if now lower.
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