On December 1st, AUD/NZD has found the bottom at 1.0416. After this, the price has been on a consistent rise, where firstly it broke above the 50 Exponential Moving Average. This MA has been acting as the support and was rejected, followed by a new higher high by AUD/NZD. It resulted in the break above the descending channel along with the 200 Simple Moving Average, suggesting a medium-term bullish trend.
Considering that price has moved quite a lot to the upside throughout today, it would be reasonable to assume that some downside correction will take place before/if the uptrend continues. There are several support areas to be considered, one being near 1.0550, which is clearly a supply/demand zone, and another is 1.1500, which is a strong psychological level.
While buying AUD/NZD at the current price seems to be extremely risky, a correctional move down could provide a good risk/reward opportunity for the bulls. Speaking about the correction, several scenarios might take place. The first is the correction towards the top of the channel, which was previously broken and that would be the 1.0550 support area. The second is the correction towards the point where 50 EMA was rejected, which is 1.0510 area.
The correction could be either fast or slow. Based on the Fibonacci cycles, the next cycle starts on December 21. By this time, AUD/NZD can either hit the upside target, which we’ll talk about in a bit or only start to move up.
If the correction is extended, the bullish cycle will start on December 21 or even January 8. But if the correction down will be fast, these are the dates when the price will test the 1.0887 resistance.
Key support levels: 1.0550, 1.0500
Key resistance levels: 1.0630, 1.0887
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Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.
Considering that price has moved quite a lot to the upside throughout today, it would be reasonable to assume that some downside correction will take place before/if the uptrend continues. There are several support areas to be considered, one being near 1.0550, which is clearly a supply/demand zone, and another is 1.1500, which is a strong psychological level.
While buying AUD/NZD at the current price seems to be extremely risky, a correctional move down could provide a good risk/reward opportunity for the bulls. Speaking about the correction, several scenarios might take place. The first is the correction towards the top of the channel, which was previously broken and that would be the 1.0550 support area. The second is the correction towards the point where 50 EMA was rejected, which is 1.0510 area.
The correction could be either fast or slow. Based on the Fibonacci cycles, the next cycle starts on December 21. By this time, AUD/NZD can either hit the upside target, which we’ll talk about in a bit or only start to move up.
If the correction is extended, the bullish cycle will start on December 21 or even January 8. But if the correction down will be fast, these are the dates when the price will test the 1.0887 resistance.
Key support levels: 1.0550, 1.0500
Key resistance levels: 1.0630, 1.0887
Thanks for your support! If you liked this analysis, please support our profile with a 👍 and follow us to get a new daily analysis.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.