Indicators Signaling AUD/NZD is Oversold
While intraday moving averages point at a continued AUD/NZD
depreciation, the latest momentum readings raise the odds of a minor
AUD/NZD appears primed for a pullback, at least towards overhead resistance established by the 50-period simple moving average. Consistent declines locked RSI below the 50% mark for most of the last 3 weeks.
More noticeable was the recent sell off which led the oscillator plunge below its 25% level. This showed that market participants are keen on selling. In the context of a prolonged down trend, the 4-hour RSI looks now very heavy on the sell side so it could be prone to a squeeze back higher. However, the risks are but still skewed to the downside.