AUD/NZD Price Analysis: Bears still holding out for a signal
- 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.
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.
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.
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.
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April 26, 2021 at 06:20PM