The Australian versus the New Zealand dollar currency pair is in a steady appreciation. Will this be enough to pass the important 1.0826 resistance level?
Long-term perspective
The rally that started at the 0.9991 low extended to the 1.0880 high. From there, a consolidation phase came into being, one that unvalidated the 1.0707 support level and sent the price very close to the firm 1.0551 level — see the 1.0582 and 1.0566 lows.
However, the bulls succeeded in confirming 1.0551 as support, as they started — from the 1.0566 low — a rise that not only pierced the resistance line that starts from the 1.0880 high, but also revalidated 1.0707 as support.
So, the first possible scenario pledges for the continuation of the current momentum, which would allow the current ascending movement to pierce 1.0826 and validate it as support. If this happens, then — after the 1.0880 high is taken out — the bulls have the green lights for 1.0983.
On the other hand, if 1.0880 is only falsely pierced or if it is simply confirmed as resistance, then the bears could draw a pullback. Such pullback could retrace until the 1.0707 support level — rendering a flat limited by 1.0880 as resistance and 1.0707 as support — or until the 1.0551 support area — also noting a range, this time with 1.0551 as support.
Short-term perspective
From the 1.0566 low, the price is in an ascending trend which — as of writing — is testing the 1.0820 firm resistance level. If the 1.0778 intermediary level holds as support, then the bulls would be able to try piercing the 1.0820 resistance, confirm it as support, and head for 1.0866.
The same scenario holds if the double support — etched by the ascending trendline and the 1.0741 intermediary level — gets confirmed.
However, if the double support gets invalidated, then the bears could extend the decline until 1.0681 or even 1.0621.
Levels to keep an eye on:
D1: 1.0826 1.0983 1.0707 1.0551
H4: 1.0778 1.0820 1.0866 1.0741 1.0681 1.0621
If you have any questions, comments, or opinions regarding the Technical Analysis, feel free to post them using the commentary form below.
