AUD/NZD Price Analysis: Aussie gains for a third consecutive day, testing key resistance near 1.0850

• Improvement in market sentiment is helping the Aussie.
• AUD/NZD bullish intraday, still in a descendant channel.

The AUD/NZD is rising for the third day in a row, recovering after falling to the lowest level in almost two months on Friday at 1.0714. On Wednesday it climbed to the 1.0850 area and above the 20-day moving average (1.0835) for the first time since late August.

Despite gaining more than a hundred pips during the current week, AUD/NZD continues to trade in a descendant channel. The trendline resistance stands at 1.0860, and a few pips below at 1.0840, there is a horizontal resistance. So a break above the 1.0840/60 area would negate the bearish bias, pointing to some consolidation at higher levels or to a resumption of the bullish trend.

A failure around current levels should favor another test of the 1.0720 area (September lows). An interim support is seen at 1.0775/80.

AUD/NZD daily chart