- AUDNZD was seen consolidating the recent losses to over three-week lows.
- The set-up favours bearish and supports prospects for additional weakness.
- The corrective slide seems more likely to extend further towards mid-1.0700s.
- Immediate resistance is pegged near the 1.0900 mark ahead of 1.0930 area.
Having found some support near 1.0815-20 region, AUDNZD was seen consolidating its recent fall to over three-week lows. Given that the pair has found acceptance below the 38.2% Fibonacci level of the 1.0565-1.1043 positive move, the near-term bias seems tilted in favor of bearish traders.
Meanwhile, technical indicators on the daily have already lost positive momentum and support prospects for an extension of the recent sharp pullback from two-year tops. Moreover, RSI on hourly charts has also recovered from the oversold territory and further add credence to the bearish outlook.
Hence, an eventual break below the 50% Fibo. level, around the 1.0800 handle, now looks a distinct possibility. The downward trajectory could further get extended towards mid-1.0700s, or 61.8% Fibo. level, which if broken should pave the way for additional weakness in the near-term.
On the flip side, the 1.0900 mark now seems to act as immediate resistance. This is followed by 23.6% Fibo. level, around the 1.0930 region, which should now act as a stop-loss level for bearish traders. A sustained strength beyond might trigger some short-covering move and push the pair back above the key 1.1000 psychological mark.