AUD/NZD has pulled back from its best...>

AUSSIE-KIWI: AUD/NZD has pulled back from its best levels since Oct 2018 over

the last two days, but the broader uptrend remains intact for now, after the

recent "golden cross" formation revived bullish momentum. The beginning of this

week saw AUD/NZD show above a key support from Nov 7, 2019 high of NZ$1.0866 to

print a new cycle peak at NZ$1.0881. That said, the latest bullish run (May 29 -

Jun 2) failed to produce a fresh peak in RSI, resulting in a bearish divergence.

Similar technical dynamics have played out during a series of preceding swings

to fresh cycle highs, as can be seen in the accompanying chart. This suggests

that the broader uptrend may be weaker than some might think, which should put

bears on alert. A fall below the channel floor at NZ$1.0697 would open up a key

support from a series of lows from the second half of May, clustered around the

23.6% retracement of the Mar 18 - Jun 2 rally. Below there would bring the

200-DMA/38.2% Fibo level at NZ$1.0544/43 into view. Bulls need a clearance of

NZ$1.0881 to regain impetus and target the channel top at NZ$1.0931.

- Please visit the following link to see the chart:

https://emedia.marketnews.com/marketnewsintl/AUDNZD04062020.png