- AUD/NZD bears are on the lookout for a break of support structure.
- The bulls are looking to take on the bear's commitments deep into weekly structure.
As per the start of the week's analysis, AUD/NZD Price Analysis: Bears waiting in the wings for an opportunity, the price may have ripened for prospects of a daily downside extension.
The following illustrates the bullish and bearish prospects from a weekly to an hourly charting perspective.
Prior analysis
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.
Live market analysis
Finally, the market is now luring the bears in with prospects of a downside continuation on the daily chart.
The price did indeed move higher since the prior analysis and has seen a rejection deeper into the weekly and daily resistance.
The extended correction on the daily chart to the 61.8% Fibo could well now be a fading opportunity:
With that being said, the 4-hour structure is still bullish:
While above the prior dynamic resistance and support, the structure would be expected to hold and equate to an upside attack into resistance.
However, given the recent failures and the broader bearish longer-term structure, there is a high probability of the support structure failing and this is where the bears will be seeking to engage with full force.
With that being said, there are still prospects of a move higher according to the weekly chart:
There has been a first time attempt at the weekly resistance and there is a full week to go yet and thus prospects of further upside potential to fully attack the bearish commitments.
Moreover, the daily close was bullish so the bulls are in charge and the daily wick could well be filled from a 4-hour upward continuation from support.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.