- AUD/NZD is offering a case for both the bulls and the bears.
- The daily resistance is a keen target, but eyes are on weekly support.
The price of AUD/NZD is testing a long term support which is expected to hold. However, if it does not, the downside will be in focus towards 1.0630 ahead of 1.04 as a long term target.
Bulls, on the other hand, are seeking a test of the daily resistance located in the 1.0760s.
The following is a top-down analysis that illustrates the market structure and the aforementioned target areas from both a bullish and bearish perspective.
As can be seen, the price is supported at a critical level.
If the support gives, then the focus will be on the downside towards the 1.04 area.
The weekly chart shows that the price is trading within a bearish impulse which will have more legs on it if the monthly support is broken.
If support holds, then the focus will be on the upside.
On the other hand, if the support holds and the resistance of the early October structure also holds, then the bears could be in with a discount.
1.0630 could be the next stop, however, and offer bulls a discount in targeting the aforementioned daily resistance.
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