AUDNZD Weekly Technical Outlook
AUDNZD is a pair that is not yet on my main watch list. Last week, I decided to add a few pairs on my list of probable pairs to watch, and it includes AUDNZD. I will be tracking its behaviour over the next few weeks before deciding whether or not to place it on my main watch list.
The AUDNZD market is slightly bearish. On the weekly time frame, the bearish turnaround that occurred four weeks ago did not have much follow-through until last week when price action printed a bearish continuation candlestick. However, its lower shadow indicated that bulls were still giving bears some fight. Presently, price action is located around a support zone which witnessed a bounce of the indecision candlestick printed two weeks ago. How price action handles the zone in the early part of this week is crucial.
On the daily time frame, price action is operating in a descending channel (blue). It is presently located at a support zone around the 1.03980 area. Last week Friday, bulls attempted to move price further northwards but their attempt was futile, resulting in the printing of an indecision candlestick. Should bulls succeed in taking price action northwards in the early part of this week, it will largely be temporary in nature; the 1.04750 area is likely to act as a horizontal barrier to any northward momentum. Nevertheless, a northward pullback to an area of value will be seen by me as a good opportunity to look for a sell-trading setup.
On the H4 time frame, last week Tuesday, price action witnessed a 68.2 Fib retracement of the southward drop from the high of January 21, 2019 to the low of February 6, 2019. Based on the preceding patterns of price action on the H4 time frame, we may see another pullback, perhaps to retest the broken down (or former) horizontal support around the 1.04630 area.
I may be wrong. Trade safe and prosper.