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The 200-day exponential moving average is a crucial support for Australian bulls, according to AUD/NZD price analysis

Alina Haynes

Oct 11, 2022 14:31

 截屏2022-10-11 上午10.10.42.png

 

In Tokyo, the AUD/NZD pair has dropped below 1.1300 as the negative bias becomes more pronounced. The cross has encountered considerable resistance near 1.1320 and is now sliding in the late New York session. The Reserve Bank of Australia's (RBA) and Reserve Bank of New Zealand's (RBNZ) differing monetary policies continue to be a burden for supporters of the Australian dollar.

 

The trend reversal has been confirmed by the four-hour formation of lower highs and lower lows, which has compelled market participants to "sell rise." The powerful 200-period Exponential Moving Average has exerted brief demand on the Australian bulls on numerous occasions (EMA). The cross depends on the 200-EMA cushion, and price action near the 200-EMA will determine the cross's future course.

 

The downward filters are strengthened at 1.1363, when there is a bearish crossover of the 20-period and 50-period EMAs.

 

Also showing that kiwi bulls are no longer bearish is the Relative Strength Index (14), which has changed from the bullish range of 60.00-80.00 to the neutral region of 40.00-60.00. A breakdown of the momentum oscillator into the negative range of 20.00-40.00 will start the momentum process.

 

If the cross breaks through the 50% Fibo retracement at 1.1240, which would push the asset to the round-level support at 1.1200 and then the 61.8% Fibo retracement at 1.1180, the kiwi bulls would gain strength.

 

Alternatively, a break over the 30 September high of 1.1440 would occur if the asset crossed the 23.6% Fibo retracement line near 1.1375. If the latter is broken, the asset will reach its peak on September 26 at 1.1462.