AUD/NZD approaches the 1.0581/34 support – Commerzbank

AUD/NZD is approaching the 1.0581/34 support area below which lies support at 1.0506/1.0460. Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, notes that the pair will keep downside pressure while below 1.0688.

Key quotes

“AUD/NZD continues to put pressure on the 1.0581/34 support area which consists of the March high, May and June lows as well as the 200-day moving average. Were this support zone to give way, the 1.0506/1.0460 area should also offer support. It is where the January and February highs and also the April 20 low were made. Only an unexpected failure at 1.0460 would confirm a top formation and would target the 1.0386 December low.”

“Immediate downside pressure remains in play while the cross trades below the two month resistance line at 1.0651 and the 55-day moving average at 1.0688. Further minor resistance comes in at the 1.0757 April high. Only if the next higher 1.0836/84 resistance zone were to be exceeded, would the May and October 2018 highs at 1.0963/95 be eyed.”