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AUD/NZD Once Again Challenges its Multi-Month Consolidation Support

After making a high on the year around 1.1425, AUD/NZD has been consolidating. The daily chart shows the market trading sideways with support around 1.0890. 

AUD/NZD Daily Chart 9/30
(click to enlarge)

In September, price bounced off the consolidation support, but failed to reach the 1.1425 high and instead stalled just above 1.12 until falling down last week. This week, price still has some bearish momentum in the short-term, but it will be challenged by a key support in the 1.0890-1.09 area.

A bullish bias is valid due to the prevailing trend heading into June. After all, the daily RSI has held above 40 for the most part, which suggests that the prevailing bullish momentum is not dead. For these reasons, we should look for a bullish outlook if price pushes to 1.09. However, we should have a limited outlook first, just in case the market is not ready to push to 1.1424. The middle of the consolidation range, around 1.1150 could be a viable target in the short to medium-term from the 1.09 handle.