AUD/NZD Price Analysis: Consolidation to continue as long as below 1.0850

• Rally fails around 1.0850 and AUD/NZD retreats, manages to hold 1.0700.
• Consolidation between 1.0660 and 1.0850 likely; more gains above 1.0850.

The AUD/NZD pair posted a negative weekly close on Friday but it managed to recover 1.0700 after falling to 1.0669, the 100-week SMA. The bullish bias remains in place but the momentum eased significantly.

The Aussie needs a weekly close above 1.0850 to clear the way to more gains, with a potential target at 1.1000.

On the downside, AUD/NZD will likely drop to test 1.0650/70 with a confirmation below 1.0700. A weekly close under AUD/NZD would change the bias to bearish.

AUD/NZD weekly chart