The Australian versus the New Zealand dollar currency pair seems to be under decisive bearish dominance. Can the bulls make their way to 1.0707?
After the 1.0566 low validated the 1.0551 firm support area, the price climbed until the 1.1043 peak, just above the equally durable 1.0903 resistance area.
Once there, the bulls had no choice but to retreat, as the bears were set to defend the area.
As a result, the price ebbed until the next support area, 1.0826. From here, the bulls began their march anew but were limited by the 1.0895 intermediary level.
This was how the descending trend that the price still finds itself in came into being.
Along its path, the trend pierced and eventually beard out as resistance each and every significant level.
Nevertheless, the last one, 1.0551, may hold an agreement with the bulls. That is because, first and foremost, the bears were not that good at keeping their gains after departing from the level following its piercing.
Secondly, the 1.0551 level, being a support area, has the potential to send the price towards the north once it oscillates above it.
So, if the price jumps above 1.0551, then the double resistance area — noted by the 1.0631 intermediary level and the upper line of the descending channel — may serve as a partial profit booking area, as the market participants would expect it to cede, thus allowing further advancement towards 1.0707.
Conversely, if the bulls are unsuccessful in conquering 1.0551, then 1.0474 is the next bearish target.
The sink from the 1.0761 high extended to as low as 1.0472. However, the low received a lot of interest from the bullish participants, as they immediately sent the price back to the previous consolidation phase, around the 1.0535 region.
If the bulls conserve this momentum, they could affirm 1.0573 as support, which in turn would open the path to 1.0621. Only if 1.0573 remains resistance, then 1.0481 may be honored with a visit.
Levels to keep an eye on:
D1: 1.0551 1.0631 1.0707 1.0474
H4: 1.0573 1.0621 1.0481
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