AUD/NZD drops back to 21-DMA after a failed attempt to cross the three-month-old previous support. That said, the cross-currency pair holds lower ground near 1.1140 during Thursday’s Asian session.
That said, the quote’s weakness could well take clues from the bearish MACD signals and the downward-sloping RSI (14), not oversold.
With this, the AUD/NZD prices are likely to break the immediate DMA support near 1.1130, which in turn could direct the quote towards the 38.2% and 50% Fibonacci retracement of April-August upside, respectively near 1.1090 and 1.1040.
However, a four-month-old support line near 1.1020 and the 1.1000 psychological magnet appear to be the key challenges for the bears.
Alternatively, an upward-sloping resistance line from June joins the two-week-old descending trend line to highlight the 1.1175-80 area as the short-term key resistance.
Following that, the 1.1220 level may offer an intermediate halt during the run-up towards the yearly top marked in August around 1.1255.
Overall, AUD/NZD bears flex muscles ahead of a speech from Reserve Bank of Australia (RBA) Governor Philip Lowe.

Trend: Further downside expected
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