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.

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