The AUD/NZD exchange rate has formed a short-term ascending broadening wedge. In its last wave upwards, the Aussie halted at a three-month high of 1.0850 prior to reaching the bottom wedge line.
It seemed that the rate had breached the given patter southwards mid-session. However, the pair returning back in the wedge suggests that it might have only be a false breakout, as the rate was unable to pass through the 200-hour SMA. Nevertheless, the outlook for the pair still remains bearish, given the characteristics of this wedge.
Thus, the Aussie is expected to depreciate against its New Zealand counterpart within the upcoming trading days, at least. A possible downside limit may be the weekly S1 at 1.0703.
It seemed that the rate had breached the given patter southwards mid-session. However, the pair returning back in the wedge suggests that it might have only be a false breakout, as the rate was unable to pass through the 200-hour SMA. Nevertheless, the outlook for the pair still remains bearish, given the characteristics of this wedge.
Thus, the Aussie is expected to depreciate against its New Zealand counterpart within the upcoming trading days, at least. A possible downside limit may be the weekly S1 at 1.0703.
