AUD/NZD Price Analysis: Bulls remain hopeful of a break towards 1.0800

• The AUD/NZD retreated from YTD highs on a dovish RBA monetary policy decision.
• AUD/NZD Technical Outlook: Upward biased but facing strong resistance around 1.0750s.

On Tuesday, the AUD/NZD pare some of its Monday’s gains, during the North American session, after a “dovish” than expected monetary policy statement released by the Reserve Bank of Australia. (RBA). At the time of writing is trading at 1.0722, barely down 0.15%. The market sentiment has improved, with US equity indices recording gains, except for the Nasdaq Composite.

AUD/NZD Price Forecast: Technical outlook

In the overnight session, the AUD/NZD plunged from 1.0750 to 1.0696, courtesy of a dovish RBA monetary policy decision. Even though it came in line with forecasts finalizing their QE program, the central bank’s language was not as hawkish as estimated. However, the downward move stalled at the confluence of the 50 and the 100-hour simple moving averages (SMAs) around the 1.0702-05 region.

That said, the AUD/NZD is upward biased. The daily moving averages (DMAs) reside below the spot price. Furthermore, the price action of the last nine days depicts that the spot price has been seesawing in the mid-point between the top and the central line of Pitchfork’s channel, which traces the price action from November 2021.

To the upside, the AUD/NZD first resistance would be the YTD high at 1.0757. A breach of the latter would expose the top trendline of Pitchfork’s channel around 1.0760-70 area, followed by 1.0800.

Contrarily, the first support would be the mid-point, between the top and the central Pitchfork’s channel around 1.0690. A break under the aforementioned would expose the central trendline of the channel around 1.0630-50, followed by the January 10 daily low at 1.0575.