The Australian versus the New Zealand dollar currency pair is under heavy bearish pressure. Could the bulls still do something to rectify the situation?
After the 1.0551 firm support area was validated by the formation of the 1.0566 low just above it, the price extended the rise until the 1.1043 high.
However, from that point onwards, the bears were not content with letting the bulls see further gains. So, they sent the price under 1.0983, which triggered the fall to the 1.0826 zone.
As the bulls were glad not only to see a better price but also to have 1.0826 validated as support, they started a new movement towards the 1.0983 level, with the purpose of conquering it.
Nevertheless, the bears showed no mercy, as they halted the bullish endeavor and brought about a new fall.
The bulls attempted to react, but their efforts were of little effect as, in the end, a descending trend took shape, one that eventually cleared the 1.0551 support.
As the bears are closing in the 1.0393 level, the bulls could refresh their efforts to gain traction. As a result, 1.0474 could be the first profit booking region, while the second one is represented by the double resistance area crafted by the 1.0551 level and the upper line of the descending channel.
Only conquering the double resistance could store medium to long-term dominance for the bulls.
On the other hand, if the downward momentum keeps its phase, 1.0292 is the main bearish objective.
After the formation of the head and shoulders pattern, marked by the 1.0761 high, unleashed the bearish strength, the price was not spared by their will.
As a result, a series of lower highs and lows were noted on the chart. Even if the bulls strived to make the market bottom just above the 1.0481 level, the bears unmounted them, validating the same level as resistance.
In this context, the 1.0400 psychological level — not highlighted on the chart — is the first profit parking zone for the bears, while 1.0321 is the second.
Only if the bulls recapture 1.0481, then they may try to reach 1.0573.
Levels to keep an eye on:
D1: 1.0393 1.0474 1.0441 1.0292
H4: 1.0321 1.0481 1.9573
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