AUD/NZD is extending the decline from 1.1489 after RBNZ’s rate hike today. For the near term, outlook will stay bearish as long as 1.1043 resistance holds, even in case of recovery.
In the bigger picture, whole up trend from 0.9992 (2020 low) should have completed with three waves up to 1.1489. Current down side momentum argues that fall from 1.1489 is an impulsive move. But at this point, it’s viewed as a leg inside the long term sideway pattern that started in 2015. Even in such case, AUD/NZD would try to hit 61.8% retracement of 0.9992 to 1.1489 at 1.0560 before forming a bottoming.
