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AUD/NZD Undecided at 1.0707

June 24, 2020 at 8:15 by Dorin Rosu

The Australian dollar versus the New Zealand dollar currency pair is in a situation that looks good for both bulls and bears. So, is there a hint about which of them might turn out to be in control?

Long-term perspective

The appreciation that started from the 0.9991 low extended all the way to the 1.0880 high. From there, a corrective way emerged, one that went beyond the double support defined by the ascending trendline and the 1.0707 level, etching the 1.0582 low.

From the low, the price climbed above the intermediary level of 1.0631, and then continued above 1.0707. Such behavior would give the bulls the message that they have dominance. However, this movement stopped at the trendline, making the bears believe that they could hope for a new movement towards the south.

But even if the price retraces from the trendline, as long as it is oscillating above the 1.0707 level, the bulls still have an open door for commencing their movement towards the north, targeting 1.0826.

On the other hand, if the 1.0707 level fails as support, then the bears could make 1.0631 their primary objective, followed by 1.0551.

Short-term perspective

The depreciation from 1.0880 ended at the 1.0580 low. The price then began a consolidative phase, limited by the 1.0629 low and the 1.0728 high.

As the high got taken out, the bulls sent the price at the 1.0741 intermediary resistance level. So, from here, the price could make a throwback so that the 1.0728 high is confirmed as support. Once that happens, the bulls may have enough optimism to pierce 1.0741 and validate it as support. In turn, such a development could spark further advancement towards the 1.0788 intermediary level and then the 1.0820 major resistance.

However, if the bears get the price under the 1.0728 high, then the consolidation phase may continue. So, the bears would target the 1.0621 level.

Levels to keep an eye on:

D1: 1.0707 1.0826 1.0631 1.0551
H4: 1.0741 1.0788 1.0820 1.0621

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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