AUD/NZD Price Analysis: Buyers keep their eye on 1.0500 above 50-day SMA

AUD/NZD continues to march higher on Wednesday ahead of RBNZ.
Bulls keep momentum to claim 1.0500, a critical level with multiple resistance.
Momentum oscillator holds onto the overbought zone with bullish bias.

AUD/NZD prints fresh daily gains ahead of the Reserve Bank of Newzealand (RBNZ) Interest rate decision. The pair opened lower but recovered swiftly toward the session’s high. At the time of writing, AUD/NZD is trading at 1.0482, up 0.14% for the day.

AUD/NZD daily chart

On the daily chart, the AUD/NZD pair bucked up the prevailing short-term downside trend, which extends from the July 13 high at 1.0753. The consolidation in price began on September 13 and the cross-currency pair formed a rounding bottom technical pattern. After breaking the descending trendline from the high of July 13, the spot continued to consolidate near 1.0485 for the past few sessions.

If the price maintains the current upside momentum, it could test the 1.0500 key level as the first bullish target. Further the Moving Average Convergence Divergence (MACD) indicator holds onto the overbought zone. Any uptick in the MACD would accelerate the buying pressure toward the 1.0550 horizontal resistance level followed by the high of August 3 at 1.0592.

Alternatively, if price moves lower, it could retest the 1.0450 horizontal support level followed by the previous day’s low at 1.0432. Next, AUD/NZD bears would testify the 1.0400 horizontal support level.