The ascending pattern line is holding up fairly effectively for AUD/NZD and it appears like one other check of help is developing.
Is the pattern nonetheless our pal?
AUD/NZD 4-hour Foreign exchange Chart by TradingView
AUD/NZD has been forming increased lows related by a rising pattern line that’s been holding since mid-August, as financial coverage divergences between the RBA and RBNZ have been highlighted.
Whereas the Australian financial system continues to print upbeat knowledge and its central financial institution stored charges on maintain as anticipated, New Zealand has been seeing some misses which are maintaining easing expectations in play.
Can AUD/NZD maintain its uptrend from right here?
Do not forget that directional biases and volatility circumstances in market value are usually pushed by fundamentals. For those who haven’t but finished your homework on the Australian greenback and the New Zealand greenback, then it’s time to take a look at the financial calendar and keep up to date on day by day elementary information!
The pair is already in correction mode after hitting a ceiling at R2 (1.1420) and is closing in on the 38.2% Fib that strains up with the pivot level (1.1310). A bigger pullback might dip to the 50% Fib nearer to the pattern line help or the 61.8% degree close to S1 (1.1270).
Hold your eyes peeled for reversal candlesticks at any of those areas since a bounce might take AUD/NZD again as much as the swing excessive or increased.
Alternatively, a clear break beneath the pattern line help and 100 SMA dynamic inflection level might counsel {that a} reversal from the uptrend could also be so as, presumably dragging the pair right down to the following help at S2 (1.1200) then S3 (1.1160).
Whichever bias you find yourself buying and selling, don’t overlook to observe correct danger administration and keep conscious of top-tier catalysts that might affect total market sentiment.
Disclaimer:Please bear in mind that the technical evaluation content material supplied herein is for informational and academic functions solely. It shouldn’t be construed as buying and selling recommendation or a suggestion of any particular directional bias. Technical evaluation is only one facet of a complete buying and selling technique. The technical setups mentioned are meant to focus on potential areas of curiosity that different merchants could also be observing. Finally, all buying and selling choices, danger administration methods, and their ensuing outcomes are the only accountability of every particular person dealer. Please commerce responsibly.
