AUD/NZD: Buyers are optimistic with an engulfing candle at the double bottom support

EagleFX Team EagleFX

AUD/NZD produced a bullish engulfing candle on the daily chart yesterday. The pair had a bounce at the same level earlier. Thus, it is double bottom support. Moreover, the combination of the last three candles produces the morning star, which is a strong bullish reversal candle. Intraday charts seem to be choppy so far. However, the daily chart's price action suggests that they may get bullish soon.

Chart 1 AUD/NZD Daily Chart

The chart shows that the last candle came out as a bullish engulfing candle produced at the level of 1.03125. The price had a bounce at the same level and made a bullish wave earlier. It found its resistance at the level of 1.04325 and came down up to the same level of support again. Traders must have waited for the price to produce a bullish reversal candle around the level. As far as the Japanese candlestick pattern is concerned, the combination of the last three candles is Morning Star. This is one of the strongest bullish reversal candlestick patterns in the financial market. Let us now have a look at the two major intraday charts.

Chart 2 AUD/NZD H4 Chart

The chart shows that the price has been on strong consolidation. The level of 1.03350 has been working as the level of support, and the level of 1.03680 has been working as the level of resistance. The buyers may go long above the level of 1.03680. The price may find its nest resistance at the level of 1.03850.

Chart 3 AUD/NZD H1 Chart

The H1 chart looks very choppy. The chart shows that the price has been heading towards the North after having a bounce at the double top bottom. The way it has been heading towards the North, it may find its resistance soon. The level of 1.03540 may work as a level of resistance since the price reacted at this level several times earlier. The buyers are to wait for the price to make a breakout at the level of 1.03540 to go long on the pair. On the other hand, if the price gets a rejection at the level of resistance, it may remain choppy for a while on the H1 chart.

The H1 and the H4 chart look rather choppy. However, the daily chart looks good for the buyers. If the price produces a daily bullish candle today as well, the pair is going to be dominated by the buyers for some days.

Try Secure Leveraged Trading with EagleFX!

Author

EagleFX Team

EagleFX

EagleFX Team is an international group of market analysts with skills in fundamental and technical analysis, applying several methods to assess the state and likelihood of price movements on Forex, Commodities, Indices, Metals and

EUR/USD remains weak near 1.1800

EUR/USD remains on the back foot on Thursday, trading close to the 1.1800 support ahead of the opening bell in Asia. The pair’s pullback comes amid further gains in the Greenback, while investors keep assessing the ECB’s decision to leave its policy rates unchanged

GBP/USD falls to new lows near 1.3530

GBP/USD extends Wednesday’s pullback on Thursday, easing lower towards two week lows around the 1.3530 area. Ongoing strength in the Greenback and the dovish hold from the BoE at its earlier meeting are keeping demand for the British Pound on the defensive for now.

Gold fails to sustain gains above $5,000 for third consecutive day

Gold is back under pressure on Thursday, slipping back towards the $4,800 region per troy ounce. A firmer US Dollar is weighing on the yellow metal, even as the broader mood remains risk off. That said, falling US Treasury yields across the curve are helping to cushion the downside and, for now at least, are limiting the depth of the pullback.