NAB discusses AUD/NZD technical outlook and highlights the importance of 1.08 level for directional bias.
"The trend line from October 2020 to April 2021 has been pivotal. The decline that began in late March initially held this key support. Today we see this trend line support at 1.0800/05 breaking. A daily close below 1.0800/05 will imply that the MT uptrend has paused," NAB notes.
"The negative shift in weekly momentum implies that this uptrend is in a multi-week period of correction. While a daily close below 1.0800/05 will be cause to look for a deeper correction in the coming weeks, we do not expect to see the MT uptrend structure broken. In maintaining the uptrend structure, the correction must bottom above the previous correction low at 1.0640. Daily close today is key," NAB adds.