The Bank of Australia raised its interest rates by 25bp yesterday but the Aussie dollar fell. Ending the pattern of higher lows & higher highs. Further downside possible?

Taking a look at the AUD/NZD forex pair after the Republic Bank of Australia raised its interest rates yesterday by 25bp. Currently, the Aussie is trading at around A$1.0847 against the Kiwi. We can see that the pattern of higher lows followed by higher highs came to an end on Friday when the pair closed below the previous higher low, arguably creating a new lower low. On the news of the rate high hike the Aussie actually slid lower as the tone from speakers came across as dovish. Additionally, New Zealand’s bank raised its rates to 5.50%, making it more profitable for investors to shift cash over from the Aussie dollar. In turn, this weakens the currency due to lower demand. After the lower low of A$1.0833 yesterday, the next level for the bears is once again the trendline support of A$1.0822. A break below it could see a move lower towards A$1.0813 and maybe even A$1.0793. The bulls would need to force their way out of the triangle to re-enter the previous levels, with resistance now sitting at A$1.0863 (along the descending trendline). A break and close above it could see a move back up towards the $1.09 level. The MACD is negative but seems like it could now turn a little positive, although it is still below 0, suggesting bearish territory. The RSI is also negative as it reads 42.