Audnzd Trades Higher

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Audnzd Trades Higher

AUD/NZD Trades Higher Near 1.09, Shows Signs Of Exhaustion

AUD/NZD is trading with upbeat momentum and has already touched the 1.0930 level (October's high). However, experts believe that the upside momentum in the AUD/NZD is getting slower with each passing day.

On the AUD/NZD H1 chart, the price has already. moved closer to the 50 SMA. On the other hand, the 200 SMA on the H1 still continues to support the AUD/NZD.

AUD/NZD Downside Is Expected

On the weekly chart of AUD/NZD, the pivot point is at 1.0890, which can be used to gauge the trend of this currency pair. For now, the AUD/NZD is above the pivot point, but that could change as the pair is showing signs of exhaustion.

If the AUD/NZD regains its momentum, the next immediate resistance is the R1, located at 1.0950. And if we look down, the support levels to watch out for include 1.09, 1.085, and 1.0825.

On the AUD/NZD daily chart, the price action shows overextension signs, while the MACD & RSI also show overbought conditions. On the MACD indicator, it will be interesting to see how long it takes for the bearish signals to materialize. But the bigger picture is that AUD/NZD's bullish momentum is slowly fading away, based on the technical indicators.

That's why it is safe to say that the long-term trend of AUD/NZD is now turning neutral. The 200 SMA is also showing no slope and is present at the 1.0820. So, any further selling in the AUD/NZD will send us back to the 1.08 level, which is also an important support zone.

Any major selling in the AUD/NZD will further send us down towards the 1.0660, followed by the 1.06 and 1.055 levels.

The 100 SMA on the AUD/NZD chart is still above the 200 SMA at 1.082. This is a sign that the bigger trend is still bullish for the AUD/NZD, but that could change as the difference between these two lines is shrinking.

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