AUD/NZD jumps above 50-DMA following Doji candle

AUD/NZD jumped above 50-DMA level of 1.0541 in Asian trade following a daily Doji candle formation that indicates equality or indecisiveness on the part of bulls and bears.

Sits above 23.6% Fibo

The pair trades few pips above 1.0553 (23.6% of Mar 23 high – July 8 low). Bid tone around the Aussie strengthened following the RBA’s rate cut move yesterday and remains strong especially against the NZD; given the RBNZ is expected to cut rates on August 11.

The cross clocked a low of 1.0437 levels yesterday before recovering losses to end the day largely on a flat note around 1.0501.

AUD/NZD Technical Levels

Failure to sustain above 1.0553 (23.6% of Mar 23 high – July 8 low) could yield break below 50-DMA of 1.0541 and a re-test of 1.05, where a violation would suggest further losses towards 1.0436 (previous day’s low). On the other side, 1.0592 (10-DMA) could offer resistance, which is breached would open doors for 1.0671 (Feb 26 low). A violation there could yield 1.07 handle.