Bears challenge 20-day SMA near 1.0320

AUD/NZD begins the new trading week on a negative note in the Asian trading session.
Further downside expected for the pair if price breaks the ascending trendline.
Momentum oscillator holds onto oversold zone with receding momentum.

AUD/NZD prints fresh daily losses on the first trading day of the new trading week. The pair travelled to the intraday high of 1.0330 but the momentum fizzled out rather quickly to test the lower levels. At the time of writing, AUD/NZD is trading at 1.0320, down 0.22% for the day.

AUD/NZD daily chart

On the daily chart, the AUD/NZD pair has been trading inside the ascending triangle technical formation from the low of 1.0278 made on Thursday.

Now, if the spot breaks the bullish sloping line, which also coincides with the 20- day Simple Moving Average (SMA) at 1.0315, more downside momentum in the pair can not be ruled out. That being said, the first downside target could be found at the 1.0300 horizontal support level.

The Moving Average Convergence Divergence (MACD) indicator trades in the oversold zone. Any downtick in the MACD would accelerate the downside momentum toward the 1.0285 horizontal support level Furthermore, daily close below Thursday’s low would bring multi-year lows level last seen in April back into action.

Alternatively, if the price moves higher, it could test the previous session’s high of 1.0336 followed by the 1.0350 horizontal resistance level.