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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