AUD/NZD Found Support at 1.0390

The long-term move to the downside that AUD/NZD has been forming for well over two weeks now was finally interrupted when the pair reached a support level at 1.0390, formed a clear inverted hammer candlestick on the four-hour time-frame above that support and sharply moved to the upside. Currently the pair is testing the resistance at 1.0490 and it has even formed a spinning top candlestick on the same four-hour time-frame at that resistance, which may be a signal for a new drop. That said, if the pair continues rallying it will likely reach the next resistance level at 1.0575, which coincides with the (MA)89 indicator on the four-hour time-frame again. A continuation of the overall bearish trend won’t be confirmed before AUD/NZD breaks out below the last low at 1.0390.