AUD/NZD Price Analysis: 4HR bid towards daily resistance open bearish opportunities
|As per yesterday's analysis, AUD/NZD Price Analysis: Bears looking for pullback to entry point, the market is establishing at support with prospects for a move back towards resistance structure.
While there are short term opportunities for a long towards the upside resistance area, the higher risk to reward fruits are more probable from a swing trading perspective when scanning the long term time frames and noting market structure.
From a short term perspective, yes, the market is establishing as seen in the 4-hour chart below:
However, the path of least resistance from a long term outlook is likely to the downside.
AUD/NZD has climbed in a relentless bull trend on an overextended the weekly chart.
While a 38.2% Fibonacci retracement has occurred, there could be some room to go yet.
Weekly chart
From a daily perspective, following a bearish impulse, a correction is expected.
A climb back to the resistance offers the possibility for a re-run back to the downside for a deeper weekly correction.
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