AUD/NZD Price Analysis: Finally, a turning point in the 4-HR W-formation
- AUD/NZD in on the verge of completing seven consecutive weeks of uninterrupted bullish closes.
- Bears are watching the 4-hour chart like a hawk.
Further to the prior analysis, AUD/NZD Price Analysis: Bears target a 38.2% Fibo retracement, the bulls have still not given anything back in an uninterrupted series of higher closes on a weekly basis.
With just 20 hours to go until this weeks close, the pair is on track to complete its 7th higher closing week in a row. Something has got to give.
However, there is little on the charts, at least in terms of technical indicators, to say that this rally is about to correct anytime soon.
All of the technicals remain bullish from the monthly down to the 4-hour chart.
Daily chart
4-hour M-formation
However, with the price completing an M-formation, the market would be expected to resist at this juncture and melt to the downside.
Could this be a turning point?
While the weekly target is located down in a 38.2% Fib retracement of the weekly impulse, the first stop meets the prior structure and a -0.272% Fibo of the recent correction to the W-formation's neckline and resistance.
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.
