AUD/NZD Price Analysis: Bears are moving in again below key trendline resistance

AUD/NZD is on the front side of a determined bearish cycle.
The M-formations on the daily and 4-hour time frames are compelling.

Ross J Burland FXStreet

AUD/NZD has continued to consolidate in what has been a bearish cycle over the course of the autumn and winter months. While on the front side of the dynamic trendline resistance, the price is destined for a downside continuation:

AUD/NZD daily charts

The M-formation is being created below the trendline resistance. A correction into the neckline would be expected to be followed by supply:

AUD/NZ H4 chart

We have the same scenario on the 4-hour chart. The M-formation and move into the Fibonacci scales and neckline of the pattern could lead to supply and be the makings of the downside continuation.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD eases marginally, back to 1.1800

EUR/USD navigates a narrow range on Thursday, hovering around the 1.1800 neighbourhood in a context of humble gains in the US Dollar. The pair’s lacklustre performance come amid the unabated trade uncertainty, geopolitical tensions in the Middle East and the cautious tone from the ECB’s Lagarde.

GBP/USD retreats from tops, approaching 1.3540

GBP/USD partially sets aside Wednesday’s strong advance and recedes to the 1.3540 region on Thursday. Cable’s modest retracement follows the equally acceptable gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold clings to gains just below $5,200, focus on geopolitics

Gold is edging modestly higher on Thursday, adding to Wednesday’s uptick and holding just below the $5,200 mark per troy ounce against the backdrop of modest gains in the US Dollar. In the meantime, attention is turning to the geopolitical scenario following US-Iran nuclear talks.