FxWirePro: AUD/NZD slips lower from session highs, recovery lacks traction

Chart - Courtesy Trading View 

AUD/NZD was trading 0.17% higher on the day at 1.0788 at around 12:30 GMT, down from session highs at 1.0811.

The pair is consolidating previous session slump, where it closed 0.78% lower, bias remains bearish.

More pain for the Aussie ahead after the Reserve Bank of Australia signalled a likely pause in rate increases in April after raising interest rates to an 11-year high.

Markets have pared back the likely peak for rates in Australia to about 4%, compared with almost 4.2% before the RBA's rate decision.

Further, China's mixed trade data and a warning on a potential escalation in Sino-U.S. tensions from China's foreign minister soured risk appetite, denting antipodeans.

While the country posted a record trade surplus in the January-February period, a sharp drop in imports raised concerns over a sluggish recovery in local demand.

Support levels:

S1: 1.0727 (Cloud base)

S2: 1.0710 (23.6% Fib)

Resistance levels:

R1: 1.0819 (5-DMA)

R2: 1.0880 (55-EMA)

Technical Summary: AUD/NZD is consolidating previous session's slump, bias remains bearish. Recovery attempts found major resistance at 55-EMA, price action has plunged further into daily cloud.

Bearish RSI divergence and MACD and ADX support downside in the pair. GMMA indicator shows minor trend in the pair is bearish, while major trend is turning bearish.  Watch out for break below cloud for further downside.