AUD/NZD Price Analysis: Correction lower likely to extend below 1.0900

• Kiwi extends recovery versus aussie, points to more gains.
• AUD/NZD could drop to 1.0830, before a consolidation pace.

The AUD/NZD is correction lower from the highest level in almost two years it reached two weeks ago at 1.1042. The cross failed to hold firm above 1.1000 and pulled back.

Technical indicators point to a continuation in the correction unless it rebounds quickly back above 1.0950. The primary trend while remain bullish as long as AUD/NZD holds above 1.0750 on a weekly close basis.

Price dropped below an uptrend line and is about to post the first close under the 21-day moving average since mid-July. Also, the MACD shows a negative bias. The immediate support stands at 1.0865 and the a strong barrier that should hold at 1.0825.

AUD/NZD daily chart