AUD/NZD technical analysis: Symmetrical triangle holds the quote tightly near 1.0580 amid data-dossier
- Symmetrical triangle remains in form even after New Zealand data while awaiting AU price numbers.
- A break of 1.0570 support can recall 1.0530 with 1.0700 likely proving its worth past-1.0665 formation resistance.
Despite witnessing a 10-pip downtick on better than forecast ANZ consumer confidence and trade balance data from New Zealand, AUD/NZD still remains up from the support-line of a short-term descending triangle while trading near 1.0580 during early Friday.
Looking at the quote’s moves on four-hour chart since April 05, a downward sloping triangle formation seems taking place with an upper-line ranging from April 17 limiting the rise at 1.0665 whereas a horizontal-line at 1.0570 restricting the decline.
As Australia’s quarterly import, export and producer price index numbers are still left for publishing, any disappointment from the Aussie data might as well trigger the pair’s slump to 1.0530 if breaking 1.0570 formation support.
Should prices continue declining under 1.0530, 1.0500 and 1.0450 level including 61.8% Fibonacci retracement of its March – April upside can flash on sellers’ radar.
On the flipside, 1.0620 and 1.0645 are likely nearby resistances for the pair ahead of confronting the pattern’s upper-line at 1.0665.
In a case where the quote rallies past-1.0665, 1.0700 and 1.0730 could lure the bulls.
AUD/NZD 4-Hour chart
Trend: Pullback expected