The AUDNZD pair reached a resistance level around 1.0800 - 1.0830 on Tuesday, which coincided with the upper boundary of the Bollinger band. The bears saw an opportunity and forced the pair to drop to the support level of 1.0680 - 1.0650 on the four-hour chart.
The strengthening of the New Zealand dollar was also helped by the announcement by Finance Minister Grant Robertson that the National Bank's financial policy would also take into account the negative effects of high house prices. Prices rose last year because of low interest rates, which were introduced after the crisis caused by the Covid-19 pandemic. The rate has rebounded from the support level and could rise within the Bollinger band. It would first test the 20 moving average in the middle and after crossing this average, it could rise further towards the upper boundary of the band at the resistance level.
The MACD indicator is in the oversold zone, which also supports the rise. On the other hand, if the kiwi strengthens further, it could send the exchange rate down to the aforementioned support level around 1.0680. The next fall would be tested at the support level around 1.0560 - 1.0530.