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
throwback.
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.
