The Australian dollar versus the New Zealand dollar currency pair sits above an important level, one from which the bulls could spark a new appreciation. The question is: are the bears going to choose to stand aside?
After confirming the support level of 1.0013, the ascending movement that started from the 0.9991 low extended to as high as 1.0880. From there, the price retraced but failed to confirm as support the next important area, 1.0707.
As a result, the bears pushed the price very close to the 1.0551 level, etching the low of 1.0582. From there, the bulls attempted a comeback, but their efforts were limited by 1.0707, which played the role of resistance.
As a consequence, the bears, yet again, drove the price even closer to the 1.0551 level, defining a new lower low. But the bulls were ready to confront the bears again, so they printed a rally that pierced the descending trendline that can be obtained by uniting the hight of the two false bullish breakouts, 1.0880 and 1.0755, respectively.
If the bulls accomplish to confirm the intermediary level of 1.0631 as support, then they can take on 1.0707 once more, which, if conquered, leads the way to the firm resistance of 1.0826.
But if the bears take over this time as well and send the price under 1.0631, then the probability of 1.0551 to cede increases.
The rally that started from the 1.0565 low ended at the 1.0692 high, after the intermediary level of 1.0681 stalled the advancement. If the bulls do not get the price above 1.0681, then the bears could benefit from this context and send the price to 1.0621.
From 1.0621 the bulls could try another rise, but if 1.0681 would only mean for them a profit-taking area and not a barrier that must be overcome, then the bears could note another downwards leg which could render 1.0621 as resistance. If this happens, 1.0573 could be paid a visit.
However, if the bulls validate 1.0681 as support, then 1.0741 is in their reach.
Levels to keep an eye on:
D1: 1.0631 1.0707 1.0826 1.0551
H4: 1.0681 1.0621 1.0573 1.0741
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