FxWirePro: AUD/NZD finds strong support at 20-DMA, 'Golden Cross' to limit downside

AUD/NZD chart - Trading View 

AUD/NZD was trading 0.25% lower on the day at 1.0746 at around 11:10 GMT, after closing 0.47% lower in the previous session. The pair is extending weakness after failure to hold break above 'Triple Top'. Price action has failed to complete the 'Three White Soldiers' pattern on the daily charts. Further, 'Bearish Divergence' on Stochs and RSI on the daily charts is likely to drag prices lower.

That said, the pair is holding support at 20-DMA at 1.0735 and further weakness only on break below. Major trend for the pair remains bullish as evidenced by the GMMA indicator. A 'Golden Cross' pattern (bullish 50-DMA crossover on 200-DMA) keeps scope for upside resumption. 

The Reserve Bank of Australia (RBA) at its policy meet earlier this week held Official Cash Rate (OCR) at 0.25% and gave an optimistic outlook for the economy, noting the improving global state of the pandemic. 

On the data front, Australia HIA New Home Sales data for April will be watched for impetus. Resumption of upside will see retest of Triple Top at 1.0840. On the flipside, breach at 20-DMA support will drag the pair lower.