- AUD/NZD remains in the hands of the bears, but the bulls are keeping an eye on price action.
- The monthly support and weekly bearish impulse are making for a bullish case.
AUD/NZD is meeting a strong monthly demand area where a bullish scenario is developing towards an upside bias for swing traders to take advantage of.
The following is a top-down analysis of how a bullish bias has been determined.
The 4-hour time frame is where the price needs to be now monitored until bullish conditions and price action reveal a high probability trading opportunity.
The monthly chart shows that the price is in the demand zone, so an upside correction can be expected while above the support area.
The monthly wicks add to the prospects of strength to this demand area.
The weekly impulse is making a new low, so an upside correction can be expected.
A 38.2% Fibonacci retracement would be sufficient.
The daily chart shows that there is some support here and the upside correction could be in the making.
There is some resistance ahead of the 38.2% target and the confluence of the eclipsed market structure, reinforcing the 38.2% target.
However, the lower time frames will be revealing as to whether the downside is completed.
The 4-hour chart remains bearish.
There could be some wiggle room left for the bears still, but according to a weekly Fib extension analysis, not much room is available.
The price, in any case, needs to be above the 21-moving average for the conditions to be bullish enough to warrant a long trade setup.
The price action from here can be monitored on a 4-hour basis over the coming days, sessions.