AUD/NZD - deeper bullish pullback on the cards
AUD/NZD continued its push higher this week, breaking and closing above resistance at 1.0610. After a slow, indecisive, start to the week, price pushed higher, soaring through the near-term descending daily trend line.
Price looks to be heading back to retest the secondary longer-term descending daily trend line. This is created from the highs on 20th Aug and 08th Oct. The current bullish move could end up being a deeper retracement in the overall bearish trend. For us to start considering a change in the overall trend, price would need to close above the latest daily higher high from 05th Nov.
A consistent 4H ascending trend line has now been established so for the coming week this will be our focus. Currently we see two scenarios. The 4H trend could continue to buoy price towards the secondary longer-term descending daily trend line next week or if price breaks and closes below it could encourage sellers of AUD/NZD to re-enter the market.
Price looks to be heading back to retest the secondary longer-term descending daily trend line. This is created from the highs on 20th Aug and 08th Oct. The current bullish move could end up being a deeper retracement in the overall bearish trend. For us to start considering a change in the overall trend, price would need to close above the latest daily higher high from 05th Nov.
A consistent 4H ascending trend line has now been established so for the coming week this will be our focus. Currently we see two scenarios. The 4H trend could continue to buoy price towards the secondary longer-term descending daily trend line next week or if price breaks and closes below it could encourage sellers of AUD/NZD to re-enter the market.