Technical Analysis

AUD/NZD is failing to get above the 50.0 retracement level on the daily chart

This is a pair that is coming back into the spotlight after the RBNZ yesterday. The pair broke above the 100-day MA (red line) and made a run up above 1.0800 in the aftermath of yesterday’s trading. But the highs failed to breach the 50.0 retracement level @ 1.0826 as the resistance level capped the upside move on the day.

In trading so far today, buyers have managed to keep the pair afloat above 1.0800 but once again, that same level @ 1.0826 is holding buyers off for now. This will be a key battleground for buyers and sellers now to define conviction as the pair sits between the two daily moving averages.

As long as price holds above the 100-day MA, buyers will have incentive to still attempt for a move higher in the pair. Risk can be defined and limited by that level, since a move lower will return control back to sellers as bias turns bearish again.

Meanwhile, the key upside level to watch will be the 200-day MA (blue line) @ 1.0883. If the pair manages to break above that, it will provide a fresh bullish bias in the pair in which after that the 38.2 retracement level @ 1.0936 and the 1.1000 figure level will be eyed.

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