AUD/NZD Price Analysis: Keeps bounce off 100-SMA inside bull flag

• AUD/NZD stays mildly bid, up for the second consecutive day inside a bullish chart pattern.
• Sustained trading above the key moving averages, firmer RSI keep buyers hopeful.
• 200-SMA adds to the downside filters, bulls can test late 2017 peak on flag confirmation.

AUD/NZD extends the previous day’s bounce off short-term key SMA while printing mild gains around 1.1010 during Friday’s Asian session. In doing so, the cross-currency pair picks up bids inside a thee-week-old bull flag.

In addition to the bounce off the 100-SMA, the firmer RSI and successful trading above the 200-SMA also keep AUD/NZD buyers hopeful.

However, a clear upside break of 1.1050 becomes necessary to confirm the bullish chart pattern suggesting a rally towards the late 2017 peak near 1.1300.

It’s worth noting that the latest high around 1.1195 will act as an intermediate halt during the anticipated run-up.

Alternatively, 100-SMA and the stated flag’s lower line, respectively around 1.0675 and 1.0950, limit the short-term downside of the pair.

Following that, the 200-SMA level of 1.0930 will act as the last defense of the AUD/NZD buyers before challenging the late April’s low near 1.0820.

AUD/NZD: Daily chart

Trend: Further upside expected