AUD/NZD Price Analysis: Bears waiting in the wings for an opportunity
|- AUD/NZD has been building the case for the downside.
- Bears wait patiently for bearish structure and a test higher.
The case for a downside extension is compelling and the following illustrates the thesis in a series of charts, starting with the weekly outlook, and then drilled down into the daily and 4-hour market structures.
Weekly chart
There is a bullish case given the M-formation.
A fuller test of the upside would be expected at this juncture prior to the next bearish leg.
Daily chart
The price has already made a significant correction according to the measurement of the Fibonacci retracements.
However, there could be some upside left in the price before it meets a 50% mean reversion and the confluence with the 21-day EMA and resistance structure.
4-hour chart
The 4-hour chart is very choppy and too risky to be looking for a setup until bearish structure is formed.
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