- AUD/NZD is meeting a weekly resistance zone from which both the daily and weekly outlooks are bearish.
- The monthly chart, however, is yet to confirm its intentions with price trapped at resistance.
The price is leaning with a bearish bias on the basis that there will be a correction at some juncture and given the length of the rally which is yet to correct.
The weekly resistance could prove a tough nut to crack and the deceleration of the price is indicating that the tables are about to turn.
The following is a top-down analysis that illustrates the near term daily objective to the downside.
The monthly outlook is bullish above the current resistance zone and bearish below until the relevant areas of structure on initial tests.
The weekly chart is showing signs of deceleration within the resistance zone.
Given the bullish trend has been uninterrupted, so far, a significant retracement would be expected to at least a 38.2% Fibonacci level as bulls take profits.
With the price now in weekly resistance, the extended W-formation’s bullish impulse would be expected to correct to at least a 38.2% Fibonacci retracement level.