- AUD/NZD holds support at 1.07, but bounce remains elusive.
- Technical charts are calling a deeper decline toward the 200-day SMA.
The bears look to be in control of AUD/NZD, but so far, last week’s low has held ground.
The pair is currently trading largely unchanged on the day near 1.0709, having clocked a high and low of 1.0730 and 1.0710 early today.
AUD/NZD fell nearly 1.3% last week, erasing gains seen in the preceding two weeks and signaling a resumption of the sell-off from the August high of 1.1044.
The failed bearish channel breakout seen on the daily chart indicates the path of least resistance to the downside. Key indicators like the 14-day relative strength index and the MACD histogram are also painting a bearish picture.
As such, the odds appear stacked in favor of a decline below Thursday’s low of 1.07. That would expose the 200-day simple moving average (SMA) at 1.0619.
Daily chart
Trend: Bearish
Technical levels
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