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  • AUD/NZD fades bounce off one-week low flashed the previous day.
  • Sustained trading below two-month-old resistance line, dwindling MACD favor sellers.
  • Bulls need to refresh the monthly to regain market confidence.

AUD/NZD seesaws around 1.0780/75 during the early Wednesday morning in Asia. The pair dropped to the lowest since September 28 the previous day but the 100-day SMA seems probing the bears targeting an ascending trend line from July 13.

Downbeat conditions of MACD and the pair’s clear follow of a seven-week-long falling trend line suggest no more entry for the buyers.

As a result, AUD/NZD sellers are likely to keep the multi-day-old support line, at 1.0735 now, on the radar while seeing a 100-day SMA level of 1.0775 as an immediate rest-point.

It should, however, be noted that the pair’s further weakness below 1.0735 may respect the last month’s low of 1.0712 for the bounce, if not then the 200-day SMA level of 1.0607 will be in the spotlight.

On the contrary, a daily closing beyond the short-term falling resistance line, currently around 1.0840, won’t be enough to recall AUD/NZD buyers as the monthly peak surrounding 1.0.865 could probe the optimists.

AUD/NZD daily chart

Trend: Bearish