The Australian dollar versus the New Zealand dollar currency pair is not being supported by the important levels.
After the high at 1.0865 that ended up to be a false piercing of the 1.0837 resistance level, the price went into a depreciation phase.
The first possible support level, 1.0689, was instantly breached and thus gave way to further devaluation. This led to 1.0640 being tested as support, but after a relatively short match, the bulls were out of the game.
As a result, the price continued dropping and reached 1.0530, which is a major monthly support. Unfortunately for the buyers, the level was not able to endure and allowed a strong bearish candle to be printed under it.
Given that the price managed to print the low of 1.0472, which of course is under the monthly support, the bears are entitled to believe that they still have the necessary power to further drive the price towards the south.
So, as long as the price is oscillating under the 1.0530 level (and even confirms it as resistance) further decline is the cards, the main target being the weekly support of 1.0361. Of course, the psychological 1.0400 — not highlighted on the chart — is an intermediate target along this way.
Only if the bulls manage to regain 1.0530, the profile can be considered a bullish one, targeting 1.0640.
The price was in a steady depreciation phase limited by the resistance of 1.0635 and the support of 1.0534.
As the price neared the support area, the bears made sure to print yet another low by materializing a downwards pointing swing with increased volatility.
Even if the price is trying to regain the psychological 1.0500, given the context, the credit still goes to the bears.
So, a new appreciation that aims to confirm 1.0534 might be underway. The first target for such a development is represented by 1.0500, followed by 1.0440.
Only if 1.0534 is confirmed as support, then the bulls might have a shot to reach 1.0635.
Levels to keep an eye on:
D1: 1.0530 1.0361 1.0640
H4: 1.0534 1.0500 1.0440 1.0635
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