- AUD/NZD continues to move sidesways, around 1.1030.
- Risks appear to be tilted to the downside with technical indicators pointing modestly to the downside.
- The correction could extend below the support at 1.0970.
The AUD/NZD cross is moving sidesways below 1.1100. The 1.1100 area caps the upside. A break higher should strengthen the aussie, and would target 1.1150 initially and then a test of 1.1180.
The daily chart shows Momentum turning south and the RSI flat at 50 reflecting the lack of directional moves. The chart looks biases to the downside.
On the flip side, a consolidation below 1.1000 should expose an uptrend line at 1.0970. A break lower would open the doors to more losses, initially to 1.0950. The next support is located at 1.0920.
While between the uptrend line and the 1.1100 area, volatility in AUD/NZD will likely remain limited. A break of one of the critical levels could trigger trading opportunities.
AUD/NZD daily chart