The Australian dollar versus the New Zealand dollar currency pair is in a throwback phase that has 1.0640 on its course.
After printing the low at 1.0263 the price entered in a very steep ascending movement, one that managed to reconquer the weekly support of 1.0361 and the monthly support of 1.0530, respectively. The movement extended until 1.0837, from where a correction began, a correction that takes the shape of a throwback.
Both 1.0640 and 1.0530 are well-respected levels and, as the price pierced both of them but had yet to confirm any of them as support, the current retracement can be considered a throwback that seeks to confirm one of them as support.
Depending on which of the two will be confirmed, the price could sign-up for an earlier or later appreciation.
If 1.0640 gets to be confirmed as support, then the price will target 1.0837 and then 1.1073. On the other hand, if 1.0640 fails to sustain the price, the throwback has its second target, 1.0530, respectively. But 1.0530, even if it is a monthly support, being under 1.0640 does not fit the market expectations, which is searching for a support that favors the smallest retracement possible. So, a revisit of 1.0530 might, in fact, delay any long-term appreciations or even tamper them, in this case targeting 1.0361.
The price is contained in a descending channel and under relevant support for the short-term: 1.0709. So, as long as the price continues to oscillate under the level, sustained appreciations are less likely, targeting 1.0635.
But if the price manages to conquer 1.0709, then the possibility for a breach of the resistance line of the channel is quite high, which translates into the price aiming for 1.0807. If 1.0807 takes the role of a support level, then the next target is 1.0900.
Levels to keep an eye on:
D1: 1.0640 1.0530 1.0837
H4: 1.0709 1.0807 1.0900 1.0635
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