Overview: The AUD/NZD crosses represent two Australasian currencies which often trade similarly against the other currencies due to similar geographical locations and high rollover rates. AUD/NZD holds bearish declines but breaks less than 1.0500 is needed to more losses. The AUD/NZD is moving in a descendant channel currently facing a support barrier, where the lower limit of the channel with a horizontal level and a round number. A firm break under 1.0500 should clear the way to more losses and potential bearish acceleration.
The target might be seen at 1.0400. the bears are targeting the downside in the market. The pair is moving towards the idea of considering house prices as part of their consideration of monetary policy. In contrast to the RBNZ the RBA is focusing on keeping short-term yields close to the office clash rater and that could leave AUD yield slightly below NZD. This open pathway for the sellers on AUDNZD rallies higher as long as this divergence remains. The bears set for the deeper declines now.
Technical Analysis: From the technical point of view we can say that the pair is making the path towards the south side. It creating negative volatility in the market and negative momentum is been created. The bears are showing their aggression in the market and fall to level 1.0516 in the current session. The price pattern is also supporting the indicators to make bearishness in the market. The more downfall can be expected in the market. On the 4 hourly charts, we can see that market is making the downfall on the south side. The major line EMA is falling below the SMA lines. On the daily chart, the market is also making downward swings. As we have to follow the trend so we suggest our sellers to set in the sell-side in market. The RSI is also showing the bearishness in the market due to its falls below 50 line and the MACD is falling below the zero line and give sell signals.
The current range of the market is 1.0494 and the support will be 1.0344 followed by 1.0244. the Resistance will be 1.0652 followed by 1.0732.
Trade idea : we can conclude from the above study sellers should go for sell level 1.0496 followed by target by 1.0346-1.0266 and stop loss will be 1.0686.
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