The Australian versus the New Zealand dollar currency pair slipped under the ascending trendline. Is this the end of the bullish dominance?
The rally that started from the 0.9991 low and which validated 1.0013 as support, extended, firstly, until the 1.0880 high.
From there, a correction phase came into being, one that drew a retracement until the 1.0566 low.
After validating the 1.0551 level as support and also etching the second point that would serve to define the ascending trendline, the bulls pushed the price until the 1.1043 high, just a little above the firm 1.0983 level.
As expected, another corrective swing was noted on the chart, extending from the 1.1043 to the double support area recorded by the ascending trendline and the 1.0826 level.
However, this time the impulsive swing would be halted. This was caused by the intermediary level of 1.0895, which caused the price to stall at the 1.0936 high.
The two highs, 1.1043 and 1.0936, respectively, may very well print a double top, with 1.0826 acting as the neckline.
As the price extended until the 1.0748 low, after piercing and apparently quickly confirmed the neckline as resistance, one possibility if for the depreciation to continue, with 1.0707 being the first target.
On the flip side, if the bulls recapture 1.0826, then they could extend until the 1.0895 intermediary level.
After validating the 1.1030 resistance area, the price started a depreciation that found support at the 1.0826 level.
After rotating the price, the bulls were able to craft the 1.0936 high, but then the bears pushed the price further to the south, until the 1.0748 low.
Now, the price seems to be limited by 1.0820 as resistance and 1.0778 as support.
If the support cedes, then 1.0741 is the next bearish target. On the other hand, if 1.0820 becomes support, then the bulls could extend until 1.0866.
Levels to keep an eye on:
D1: 1.0826 1.0707 1.0895
H4: 1.0820 1.0778 1.0741 1.0866
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