AUDNZD - OVERBOUGHT CONDITIONS HINTING AT A POSSIBLE REVERSALSymbol - AUDNZD
CMP - 1.1485
AUDNZD continues to maintain its upward trajectory, supported by fundamental divergence between the two economies. The Australian dollar remains resilient and continues to outperform the New Zealand dollar after the RBNZ implemented an aggressive 50 basis point rate cut, lowering the official cash rate to 2.5%, while the RBA remains on hold due to rising inflation concerns.
Today's move is primarily driven by the Reserve Bank of Australia’s hawkish stance, which has further fueled AUD strength. The pair has been rallying consistently without any meaningful pullbacks or retracements, and several technical indicators are now signaling potential exhaustion within the current uptrend.
A reversal setup may emerge if price action begins to show rejection patterns near key resistance zones, offering short opportunities with favorable risk-to-reward potential.
Resistance levels: 1.1485, 1.1500
Support levels: 1.1427, 1.1378
However at the same time, Keep in mind that If any further hawkish commentary or policy action emerges from the RBA, it could reinforce AUD’s strength, leading to additional upside in AUDNZD before any significant correction unfolds.
