AUD/NZD Price Analysis: Bulls await confirmations on lower time frames
- AUD/NZD holds above key support with a bias to the upside.
- The Fibonacci retracement on daily bullish impulse significant to expect fresh bullish impulse.
The following is a top-down analysis that offers a bullish bias from the monthly down to the daily chart.
The 4-hour chart needs to offer a more bullish environment prior to there being enough conviction, at this stage, for a high probability bullish set-up.
Monthly chart
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The monthly chart shows the price has been supported at an old resistance and is now expected to continue higher.
Weekly chart
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Moving down to the weekly chart, there is support within the support and compliments the bullish bias on the monthly chart.
Daily chart
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On the daily chart, we can see that the price has made a significant 50% correction.
The support has held with a confluence of a counter trendline which has also acted as support on the latest downside rejection.
4-hour chart
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The price remains below the 21-moving average and bulls may wish to see it attempt a break higher before getting on board.
A break higher would usually be followed by a restest of what was the old resistance turning into new support.
On the retest, bulls would enjoy a discount and support structure from where a stop loss can be placed below it, protecting the position for a higher probability bullish setup.
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.
