• AUD/NZD Price Analysis: Bulls looking for strong CPI for fresh cycle highs are let down

Market news

27 July 2022

AUD/NZD Price Analysis: Bulls looking for strong CPI for fresh cycle highs are let down

  • AUD/NZD is under pressure following CPI that disappointed the bulls.
  • The price is correcting lower and bears eye the 61.8% Fibo. 

Australia's second quarter Consumer Price Index data was released as a letdown for the Aussie bulls. 

The data has arrived as follows:

1.8% QoQ (expected 1.8%), Trimmed mean 1.5% (expected 1.5%) QoQ.

This has dented the progress that AUD/NZD had been making as follows:

AUD/NZD weekly chart

The W-formation is a pattern that usually sees the price retest the neckline which in the case above worked out. The price subsequently moved higher from there as bulls committed and eyed the highs of 1.1163. 

The price has dropped following the data and on the daily chart and the bears can target the 61.8% retracement near 1.1080. 

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