AUD/NZD aims at 1.0730 resistance

FXStreet (Moscow) - AUD/NZD is trying to break above local resistance of 1.0730 on the back of strong upside movement triggered by weaker than expected NZ inflation numbers

AUD/NZD is on the ride

AUD/NZD short-term picture suddenly turned bearish, even though Aussie is on retreat agains most other major currencies. It looks like traders are disappointed by New Zealand 2Q CPI that came out at 0.3% q/q, 1.6% y/y and failed to live up to expectations. This news triggered massive AUD/NZD short covering as the cross has been oversold for some time already. It is not clear what is going to happen with AUD/NZD as Aussie sell-off might have its toll and discourage further buying in the cross. The movement is regarded as a short-term correction from the oversold levels until the cross trades below 1.0800-1.0835 area.

What price levels and patterns have to be considered?

Spot is presently trading at 1.0729, and next resistance can be seen at 1.0732 (Daily 20 SMA), 1.0742 (Daily High), 1.0759 (Daily Classic R3), 1.0775 (Daily 100 SMA) and 1.0781 (Weekly Classic R2).

Support below can be found at 1.0726 (Daily Classic R2), 1.0719 (Weekly Classic R1), 1.0707 (Daily Classic R1), 1.0697 (Hourly 20 EMA) and 1.0694 (Yesterday's High).