AUDNZD - dynamic rebound from 1.0390 support

On Friday afternoon supply double tested support at 1.0390. It seemed that breaking this level was only a matter of time and actual supply target at 1.0330 would be reached very quickly. On Monday we woke up in completely different moods and morning test of support at 1.0390 ended with a dynamic reflection. On H4 chart demand broke with a single candle resistance area at 1.0440. Current target of bulls are resistance levels at 1.0500 and 1.0570.

At the moment, it is difficult to clearly assess how AUDNZD will behave. Price moves in a clear bearish trend and supply will try to follow it. On the other hand drops that we have observed for recent two weeks have not been corrected until now. In addition AUDNZD is as close as 60 pips to key support at 1.0330. We will know more at the end of today’s session when it will be possible to answer the question whether demand has managed to maintain advantage throughout the session.

Ending session at similar level will strengthen the demand and may lead price to resistance 1.0570. But If supply will be stronger and at the end of the session, a long upper shadow will appear it can only accelerate declines to key support 1.0330.