AUD/NZD has been bearish on the daily chart for quite a few days. The price has been heading towards the South, but selling pressure has not been that strong recently. A level of support is nearby, which may have held the sellers back a little. There is still some space for the price to travel towards the South. Major intraday charts still favor the sellers. However, the sellers shall count the support for their next trading planning on AUD/NZD.
The chart shows that the price has been bearish for the last four weeks. On its way, it made a breakout at the level of 1.0650. The selling pressure could have been more; it has rather been heading towards the support as bearish divergence. The chart shows that the price had a strong bounce at around the level of 1.0350 earlier. This might have made the sellers cautious about selling the pair aggressively. Since there is still some space for the price to travel, it may keep going towards the level of support, which may make intraday charts’ traders interested in selling the pair today. Let us now have a look at two major intraday charts.
The chart shows that the price has been bearish by having consolidations now and then. It has found a level of resistance where it has produced an Evening Star. If the price breaches the level of 1.0404, it may create extra selling pressure and drive the price towards the daily support. The sellers may set their Stop Loss above the level of 1.0425 and Take Profit at the level of 1.0350. This means the risk-reward looks lucrative enough to attract more sellers.
The H1 chart looks choppy. The price has had a rejection at the resistance level twice. On the other hand, it had bounces at the support twice as well. An interesting point to notice is it has produced an Evening Star on the H1 chart as well. This is what has driven the price towards the support. If it makes a breakout, the H1 sellers may go short on the pair and drive the price towards the daily support as well.
All three charts look very bearish. As we have seen on the daily chart, there is still some space for the price to offer some pips for the sellers. Thus, the pair may have another bearish day today.
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