Aussie looking for a leg up to cap downside

• The AUD/NZD has drifted back, but the Aussie is looking for a foothold.
• The pair’s push into fresh highs early this week was met with a sharp correction lower.
• Daily candles look to be firming up a consolidation pattern.

The AUD/NZD kicked off Tuesday’s trading with a backslide into 1.0815 from the day’s opening bids near 1.0860, extending a pullback from Monday’s peak at 1.0887.

The Aussie-Kiwi pair has run into technical support at the 200-hour Simple Moving Average (SMA) and is looking for a bounce, trading near the 1.0830 level.

Tuesday’s decline set a new low for the week, and the AUD/NZD heads into Wednesday’s market session exposed to further declines as the Aussie struggles to find momentum for a bullish recovery.

The AUD/NZD has been sticking close to the 200- and 50-day SMAs, which are currently consolidating near the 1.0800 handle, and the pair’s long-term momentum appears decidedly bearish, with technical indicators drifting into the midrange.

AUD/NZD Hourly Chart

AUD/NZD Daily Chart