The AUD/NZD pair is currently trading around 1.0900, showing slight losses but still keeping a generally positive outlook. The key support level is just below 1.0880, while resistance is near 1.0920. While there is some selling pressure, the overall technical outlook is still encouraging, with various indicators suggesting upward movement. However, mixed short-term signals may present challenges for further gains as traders navigate changing pressures.

Bullish Structure

The bullish outlook is supported by short-term moving averages. The 20-day simple moving average (SMA), 10-day exponential moving average (EMA), and the 10-day SMA all indicate upward momentum. On the other hand, the 100-day and 200-day SMAs suggest selling pressure, pointing towards possible pullbacks if momentum slows down. Momentum indicators show mixed results. The Relative Strength Index (RSI) is around 50, indicating neutral conditions. The MACD suggests a buying trend, while the Stochastic %K and Stochastic RSI Fast indicate overbought conditions. Immediate support is expected at approximately 1.0871, with resistance levels at 1.0914, 1.0923, and 1.0945, which may hinder recovery efforts. Currently, the AUD/NZD pair is holding close to the 1.0900 level with only minor intraday losses. The overall trend leans upward, though not aggressively. At these levels, there’s no sign of a dramatic change in direction, but the mixed technical signals suggest we should be cautious in short-term trading approaches. Examining the overall price structure shows a slight preference for buying pressure. This is because the faster-moving averages, linked to short-term price movements, are rising, indicating ongoing near-term strength. Specifically, both the 20-day simple moving average and the 10-day exponential average are moving upward, confirming that recent dips are being bought. However, the decline in the 100-day and 200-day SMAs should not be overlooked. This difference between short-term and long-term trends is significant. It shows that while there is upward movement now, it may not last unless current levels become stable.

Momentum Readings

Momentum readings are somewhat unclear. The RSI remains around the midline, indicating a standoff between buyers and sellers. The MACD leans bullish, remaining above the signal line, which typically suggests underlying buying trends are intact. However, the Stochastic indicators raise red flags, as both the %K line and the fast RSI are in overbought territory. When this happens, we should be more alert for potential reversals. Support levels are present but fragile. The first support lies near 1.0871, just below the current price. If the price drops under that level, we may see action around the 1.0850 area, which aligns with recent swing points. Resistance levels are closer together, with the nearest at 1.0914, followed by levels at 1.0923 and a stronger barrier near 1.0945. This ceiling has been tough to break in recent weeks, and it’s reasonable to expect price action may struggle there again. Without renewed momentum, rallies might slow down before hitting this upper limit. There’s no urgent need to chase a bullish trend unless a clear trigger appears. It’s better to wait for a daily close above 1.0925, ideally accompanied by increased volume or confirmation from lagging indicators. On the downside, risks are limited unless sellers push prices below 1.0850 convincingly, which we haven’t seen so far. Pullbacks are part of the broader trend and shouldn’t be concerning unless they become deeper and faster. For now, we favor shorter-term strategies for more flexibility and quicker responses around support and resistance levels. The outlook is still positive, but we need to be cautious. We will closely monitor price structure and momentum readings in the upcoming sessions and will engage only when conditions align favorably. Create your live VT Markets account and start trading now.

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