- Kiwi among worst performers on Thursday, adding strength to the rally of AUD/NZD.
- A daily close above 1.0825 likely to open the door to more gains.
The AUD/NZD pair is rising sharply after correcting lower during three consecutive days. The pair peaked at 1.0842, reaching the highest level since January and then pulled back modestly, holding above 1.0800 so far.
The area around 1.0800 and 1.0820 is a critical barrier that, if broken, should clear the way to more significant gains, with the first target near 1.0900. The aussie is trading above the mentioned zone and technical indicators point to the upside, favoring an extension to the upside.
If AUD/NZD pulls back under 1.0800, it could suggest the aussie is not ready to move higher. The decline would likely find initial support at 1.0750 (21-day MA). Under that area at 1.0690, there is a downtrend line on a closing basis. The bullish outlook will be negated if the pair drops below 1.0620/30 (uptrend line from December low).
AUD/NZD daily chart
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