The Australian Dollar has been constrained by several descending channels against the New Zealand Dollar since late October 2017. The upper boundary of a dominant channel was reached on October 24 and has since remained trading along this patterns.
The inability for the AUD/NZD pair to initiate new moves up indicates that it might breach the junior pattern as soon as possible. The combination of the 55– and 100 –hour SMAs was restricting the rate from making such upward wave.
Everything being equal, the currency exchange rate could plummet further during the following trading sessions. Meanwhile, technical indicators favour bears to grow stronger.
