The previous analysis of the AUD/NZD pair turned out to be correct. To the letter. However, the following surge turned out to become a jump not a surge. After finding support below the 1.0980 mark the pair skyrocketed to the 1.1250 level.
Meanwhile, the pair’s surge was stopped on Friday, which provided an opportunity to do some pattern analysis. After connecting the low levels of October 16 and setting a parallel line at the recent high levels, an ascending channel was drawn.
Although, the channel still allows for both a short term decline and a surge, as it has the particular angle that allows both moves simultaneously. In the case of a surge the monthly R2 at 1.1266 is the next target, and, if the pair declines, the weekly R3 will provide support on Friday at 1.1117 mark.
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The Australian Dollar has reached the previously expected target of 1.1266, where the monthly second resistance is located at against the New Zealand Dollar. However, after reaching above the resistance level the currency exchange rate retreated back below 1.12 levels.
Although, the recent sort of unexplainable fluctuations, when properly charted, reveal an almost horizontal channel pattern, which is junior to the channel up pattern discovered last week.
By looking at the pattern, one can expect that the highest level achievable in the near future is the 1.13 mark.