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AUD/NZD Peaked Above the Major 1.0826 Resistance

June 3, 2020 at 5:06 by Dorin Rosu

The Australian dollar versus the New Zealand dollar currency pair reached the destination of 1.0826. Is this where the bulls are leaving the market, or it is just the beginning?

Long-term perspective

The rise that started from the 1.0476 low accelerated after it pierced the 1.0292 important level, but decelerated after conquering 1.0551, continuing as an ascending trend that extended until the 1.0880 peak.

Considering that the market printed higher lows and higher highs and that they led the way to the key 1.0826 level, the conclusion would be that the bulls are the ones that lead.

On the other hand, given the importance of the level, it is easy to assume that the bears might defend this area, preventing further advances without a fight.

So, as long as the ascending trendline that starts from the 1.0476 low is validated, the price may continue towards the north.

The same goes even if the trendline gets pierced, but the 1.0707 level gets confirmed as support, as it too serves as a starting point for a new march towards the 1.0983 bullish objective.

However, if after the price revisits 1.0707, it is not able to pass 1.0826 and confirm it as support, then the market could enter in a range trading phase, limited by the two.

Only the confirmation of 1.0707 as resistance could delay additional appreciation attempts and send the price to the next solid support area, 1.0551.

Short-term perspective

The surge that started from the 1.0666 low, which confirmed the intermediary level of 1.0681 as support, extended until the 1.0880 high, from where the price began a consolidative phase that sits on the support area defined by the 1.0820 level.

As long as this area retains its role, the bulls have the clearance to pay a visit to the 1.0880 peak.

However, if the bears push the price even lower, then 1.0778 may be the next target and, if it does not hold, the fall could prolong to 1.0741.

Levels to keep an eye on:


D1: 1.0707 1.0983 1.0826 1.0551
H4: 1.0820 1.0778 1.0741 and the peak of 1.0880

If you have any questions, comments, or opinions regarding the Technical Analysis, feel free to post them using the commentary form below.

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