The Australian dollar versus the New Zealand dollar currency pair managed to keep the gains above 1.0640, thus giving credit to the bulls.
The appreciation that started at 1.0263 managed to reconquer two important support areas: the weekly level of 1.0361 and the monthly support of 1.0530, respectively. To this, a third support can be added — 1.0640 — that is yet to be confirmed, but that, given the recent developments, may already be considered as confirmed.
The fact that the price confirmed as support the level of 1.0689, which previously was the resistance where the correction at 1.0708 started from, led to 1.0640 remaining untouched. This is a card in the sleeve, as 1.0689 could do the job of propelling the price towards 1.0837 in itself, but, just in case, if the price tries to breach 1.0689, then 1.0640 could serve for the buyers as an area of defense.
So, as long as the price continues to oscillate above 1.0689, the profile remains bullish, as any bullish price action from here renders 1.0837 as the first target. Even if 1.0689 is pierced, as long as the event is short-lived and the price rejected by 1.0640, any day closing above 1.0689 can be considered a bullish opportunity.
But even if 1.0640 gets pierced, the fact that the next support — 1.0530 — is a monthly level should make the bears celebrate their small victory and quickly pull back, as 1.0530 is expected to be packed with bulls targeting 1.1073 (not visible on the chart).
The price is in a flat limited by 1.0709 as support and 1.0807 as resistance.
Given the bullish profile discussed for the daily timeframe, preferably is to keep an eye on the support for opportunities that target the resistance. If the support is breached, aggressive traders may embark for 1.0635, from where the conservative short-term buyers may join in.
Levels to keep an eye on:
D1: 1.0689 1.0640 1.0530 1.1073
H4: 1.0709 1.0807 1.0635
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