Price action remained consistent this week for AUD/NZD, which continues to be constrained within a descending channel structure on the daily timeframe. Early in the week, AUD/NZD posted a convincing lower high on the daily timeframe and from there continued it’s daily bearish trend, moving from 1.075 and down through the support at 1.0610. Price found support at 1.055 and the lower boundary of the daily channel on Friday, but a lower low was formed, signifying the trends continuation.
As price touched the lower boundary of the channel structure late last week, going into this week, we are expecting price to continue its bullish corrective move back up to the upper boundary of the channel. Price needs to break through the descending 4H trend first. With bearish confirmation from the upper boundary, we see this as an entry point to continuing riding the bearish overall trend down. However, if price breaks above the upper boundary of this channel the pair could be in for a larger bullish corrective move.
As price touched the lower boundary of the channel structure late last week, going into this week, we are expecting price to continue its bullish corrective move back up to the upper boundary of the channel. Price needs to break through the descending 4H trend first. With bearish confirmation from the upper boundary, we see this as an entry point to continuing riding the bearish overall trend down. However, if price breaks above the upper boundary of this channel the pair could be in for a larger bullish corrective move.