- The AUD/NZD pair remains in a descendant channel with a bearish bias and currently supported by 1.0440.
- Last week recovery has been erased and now, it points to some consolidation before another test of the area around 1.0440.
Yesterday and on Monday, the recovery of AUD/NZD was capped by the 55-day simple moving average that stands near 1.0550, also a horizontal support and is near the upper limit of the bearish channel. So the critical level for bulls to watch is 1.0550/65: a daily close on top would remove the current bias, favoring more gains ahead.
The area around 1.0440 is likely to keep losses limited. A break lower could signal more losses. The next strong support emerges around 1.0400, a psychological level and the lower bottom of the channel.
AUD/NZD Daily Chart