The Australian dollar versus the New Zealand dollar currency pair is in a consolidation phase that seems to be under bullish pressure.
After falsely piercing the weekly support of 1.0361 and confirming the monthly support of 1.0530, the price conquered a new area — the psychological 1.0700 with the technical correspondent of 1.0689 — above which it began a consolidation phase.
The interesting fact about this phase is that it falsely pierced the 1.0689 support level twice — printing the lows of 1.0664 and 1.0661, respectively — and confirmed it once — between the two false piercings. This is the signature of a strong bullish drive.
To the already clear message that the bulls are promoting, to be added is the price action that took place on October 1 and October 4, respectively, and which became pin-bars. The fact that the second pin-bar could have been printed better — with a shorter upper shadow — is amendable, but this is resolved as the lows of both candles confirm as support the same area of the 1.0700 psychological level.
In the given circumstances, the expectations are for the price to continue to move to the north, a first target being the resistance of the consolidation phase — 1.0837 — followed by 1.0900.
Only the confirmation as resistance of 1.0640 has the power to postpone the expected outcome.
The price is printing new higher highs and higher lows, as it can be seen from the green boxes. This is a sign of the bullish profile that is visible even in the short term.
After the confirmation of 1.0709 as support, the price is now heading towards the 1.0807 resistance.
In the context of the discussion for the daily chart, the expectation is for the price to pierce 1.0807, confirm it as support, and head for 1.0880 which serves as the main target.
Only if 1.0807 is confirmed as resistance, then the appreciation may take a while to materialize. But as long as 1.0709 remains intact, the bulls remain in control.
Levels to keep an eye on:
D1: 1.0689 1.0837 1.0900 1.0640
H4: 1.0709 1.0807 1.0880
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