AUD/NZD Will Likely Continue Falling

The AUD/NZD move to the upside began about two weeks ago after the pair bounced off from the support at 1.0660. That move to the upside is obviously over for now, however, because the pair met a strong resistance at 1.0990 and formed a pair of very telling candlesticks on the daily time-frame, namely a doji candlestick and a shooting star candlestick, after which it bounced off from the aforementioned resistance. For now the pair remains bearish and the move to the downside will probably continue towards the closest support, which is likely at 1.0850 and coincides with the (MA)89 indicator on the four-hour time-frame. If the pair breaks out below that level then the next target will likely be at 1.0790, which is the same indicator, but on the daily time-frame.

AUD/NZD is Retracing

AUD/NZD has been moving to the upside since the beginning of March this year but the pair finally finally found some resistance at 1.0560 and bounced off from that level. The pair formed several very telling candlesticks at that resistance, namely a shooting star candlestick on the daily time-frame and two shooting star candlesticks on the weekly time-frame, the first of which was formed significantly lower than the other, already indicating that the bullish trend was likely exhausted. Currently the pair is falling towards the (MA)89 indicator on the daily time-frame, which is at 1.0775. A breakout below that support level could lead to a further move to the downside towards 1.0650, which is the previous low.

AUD/NZD Will Likely Continue Rising

After AUD/NZD bounced off from the support at 1.0480 the pair formed a clear hammer candlestick on the monthly time-frame which was a major signal for a likely long-term move to the upside. That move has already begun and the pair has risen to 1.0900. It is obviously currently testing that resistance level and considering the aforementioned signal on the monthly time-frame the move to the upside should continue, even if there is a retracement first. Once the pair breaks out above 1.0900 it will likely continue rising towards the next target, which is probably around 1.1000 and a breakout above that level could lead to a further move to the upside towards 1.1100 – 1.1120.