AUD/NZD - how deep will the pullback be?
The ‘King of Consistency’ AUD/NZD posted its first bullish week for a month. The change in short-term trend had to be expected as the pair has been on a death spiral for the past three weeks. Although breaking outside of the descending daily channel structure early in the week, price then broke back into the channel and continued to push back into the area of resistance surrounding 1.0520.
The break back into the channel structure and the break above the 4H descending trend line would infer that, in the short-term, bullish moves will persist, potentially taking price back to 1.0570 initially. If price breaks and closes above resistance at 1.0570 on the daily timeframe then a move back towards the upper boundary of the channel structure would be likely.
The overall trend is still very much bearish for this pair, with a persistent lower low, lower high structure. The higher that price reaches the better the risk to reward may be for those that are favoring the bearish overall trend.
The break back into the channel structure and the break above the 4H descending trend line would infer that, in the short-term, bullish moves will persist, potentially taking price back to 1.0570 initially. If price breaks and closes above resistance at 1.0570 on the daily timeframe then a move back towards the upper boundary of the channel structure would be likely.
The overall trend is still very much bearish for this pair, with a persistent lower low, lower high structure. The higher that price reaches the better the risk to reward may be for those that are favoring the bearish overall trend.