AUD/NZD has come under renewed buying interest on Monday, snapping three losing sessions as it opened with a gap up. Before the bearish retracement, the price challenged a five-month high of 1.0990 but quickly gave back its gains. The price is developing above the medium-term moving averages in the daily timeframe, while the technical indicators are endorsing the bullish tone in the near term.
The Relative Strength Index (RSI) is pointing upwards over the last couple of days, above the threshold of 50 and the MACD oscillator lies above the trigger and zero lines, suggesting further gains.
Should the market extend gains, resistance could be met at the 1.0990 level, taken from the latest high. A significant jump above this area could send prices towards the 1.1070 hurdle before the markets retest the 1.1110 zone, identified by the peak on December 2017.
On the flip side, if the pair bounces down, immediate support could come from the 50-day simple moving average (SMA) around 1.0816 at the time of writing. Then, if the market fails to hold above this level, the next stop could be at the 1.0660 support.
In the bigger picture, the price seems to be in a slight upward tendency with weak momentum as it posted several higher lows in the past but is struggling to post higher highs.
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