- AUD/NZD slumped to a fresh seven-month low after New Zealand jobs data.
- Oversold RSI can trigger price recovery to regain its stand above 38.2% Fibonacci retracement level.
Despite falling to the lowest in seven months, AUD/NZD struggles to hold its recent downward trajectory as it trades near 1.0290 during the Asian session on Tuesday.
The quote slumped after New Zealand’s second quarter (Q2) employment statistics beat market forecasts with a huge margin.
Prices seesaw near 38.2% Fibonacci retracement of its January to April upside, at 1.0311, with a clear break below the same opening the door for the slump towards 1.0000 psychological magnet. Though, chances of taking an intermediate halt to 1.0100 can’t be denied.
In a case bears refrain from respecting oversold conditions of 14-day relative strength index (RSI), January month low near 0.9630 could be in their sight.
On the upside, August start low around 1.0363 and 21-day exponential moving average (EMA) near 1.0410 are likely nearby resistances to watch during the pair’s pullback.
Should there be an increasing buying past-1.0410, 23.6% Fibonacci retracement of 1.0472 and ten-week-old descending trend-line at 1.0510 could lure buyers.
AUD/NZD daily chart
Trend: Pullback expected
Share
