The Australian versus New Zealand dollar currency pair retraced until the 1.0707 level. Are the bulls able to pull off another rise?
After validating 1.0013 as support, the price printed a rally that extended until the 1.0880 high.
From the 1.0880 high, which is part of the false piercing of the 1.0826 firm resistance area, the price passed 1.0707 — also a steady level — only to stop near the next one, 1.0551.
From 1.0551, the low of 1.0566 fueled a new movement toward the north, one that peaked at 1.1043.
However, this was a renewal of the previous events, as the 1.1043 high is part of the false piercing of 1.0983, and as the first potential support — 1.0826, in this case — ceded, leading the way to the next support area, 1.0707, respectively.
Nevertheless, what is different this time is that the appreciation which started — on this occasion — from 1.0717 was stopped in its tracks by the intermediate level of 1.0895.
As a result, the bullish morale is low. So, if the bulls will not be able to pierce and depart from the upper line of the descending channel, then the bears could — once more — define a new depreciation, one that could get beneath 1.0707 and, from there, target 1.0631, followed by 1.0551.
But if the bulls do succeed in approaching 1.0826, validating it as support paves the way to 1.0895.
The appreciation that came about from the 1.0717 low extended until the 1.0894 high.
Still, from the 1.0894 peak, the depreciation not only that it washed away the bullish gains, but it also touched the 1.0681 intermediary level.
If the bulls are not able to recapture 1.0741, then 1.0681 may be paid a visit, with 1.0621 being next.
On the other hand, 1.0741 could come to the aid of the bulls, allowing them to extend until 1.0778 and then to 1.0820.
Levels to keep an eye on:
D1: 1.0707 1.0631 1.0551 1.0826 1.0895
H4: 1.0741 1.0681 1.0621 1.0778 1.0820
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