• AUD/NZD holds lower ground near the short-term key support after falling the most in a week.
• Failure to cross the previous support joins downbeat oscillators to favor the bears.
• Two-week-old descending trend line adds strength to the 1.1175-80 hurdle.

AUD/NZD drops back to 21-DMA after a failed attempt to cross the three-month-old previous support. That said, the cross-currency pair holds lower ground near 1.1140 during Thursday’s Asian session.

That said, the quote’s weakness could well take clues from the bearish MACD signals and the downward-sloping RSI (14), not oversold.

With this, the AUD/NZD prices are likely to break the immediate DMA support near 1.1130, which in turn could direct the quote towards the 38.2% and 50% Fibonacci retracement of April-August upside, respectively near 1.1090 and 1.1040.

However, a four-month-old support line near 1.1020 and the 1.1000 psychological magnet appear to be the key challenges for the bears.

Alternatively, an upward-sloping resistance line from June joins the two-week-old descending trend line to highlight the 1.1175-80 area as the short-term key resistance.

Following that, the 1.1220 level may offer an intermediate halt during the run-up towards the yearly top marked in August around 1.1255.

Overall, AUD/NZD bears flex muscles ahead of a speech from Reserve Bank of Australia (RBA) Governor Philip Lowe.

AUD/NZD: Daily chart

Trend: Further downside expected