AUD/NZD Price Analysis: Correction to 1.0550 still on the table

• Recovery of the Aussie loses strength at the 20-day SMA, bias still points to the downside.
• Bearish pressure is likely to intensify with a slide under 1.0650.

The AUD/NZD rose sharply from below 1.0600 but it failed to rise above the 1.0750 area and to recover the 20-day simple moving average.

A consolidation period between 1.0750 and 1.0630 seems likely. A daily close under 1.0650, would clear the way for an extension of the correction that started early-June after being rejected from 1.0850.

A close above 1.0750 could signal the correction is over and would point to another test of 1.0800. The critical long term resistance stands at 1.0850: if broken on a weekly basis, the Aussie will be ready to more gains over the medium term.

AUD/NZD daily chart