Bears Taking Hold Beneath 1.0631 on AUD/NZD?

The Australian versus the New Zealand dollar currency pair seems to have some trouble printing an appreciation. Are the bulls setting something up?

Long-term perspective
The rally that started from the 1.0566 low managed to climb until the 1.1043 high, just above the firm area of 1.0983.
From there, the bears kicked in, wiping away most of the bullish efforts, as they sent the price to the next support area, 1.0826.
Of course, the bulls attempted a comeback, but, determined, the bears ironed out all the bullish shots.
This resulted in the price slipping under 1.0826, which set in motion the falling trend that extends until the 1.0418 low.
Nevertheless, the bulls defined an inverted head and shoulders that aided the start of a rally that touched the 1.0826 level, noting the 1.0842 high.
Once more, 1.0826 proved to be strong resistance, causing a rotation that sent the price, yet again, beneath the next support zone, 1.0707 in this case.
Furthermore, the decline was not able to find support at the 1.0631 intermediary level, and, moreover, it reached the 1.0551 area. This sets a bright perspective for the bears.
If the bulls are not able to drive the price back to the 1.0631 level, which would give them another chance to conquer it, then the next bearish objective sits at 1.0474.
On the other hand, if 1.0551 is validated as support, then 1.0631 may be in bullish reach and, if recovered, turns 1.0707 into the main bullish target.

Short-term perspective
From the 1.0627 low, the price climbed until the 1.0842 high.
As it failed to validate the 1.0820 level as support, it started a sharp decline, which led to trading beneath the 1.0621 intermediary level. The pennant that formed just under 1.0621 fueled further breakdown, putting the price below 1.0573.
So, as long as the oscillations unfold under the double resistance etched by the 1.0573 level and the trendline that starts from the 1.0839, 1.0516 is the first bearish stop.
On the flip side, if the resistance cedes, then 1.0621 is the next bullish stop.

Levels to keep an eye on:

D1: 1.0631 1.0551 1.0707 1.0474
H4: 1.0621 1.0573 1.0681 1.0516

If you have any questions, comments, or opinions regarding the Technical Analysis, feel free to post them using the commentary form below.

Original from: www.earnforex.com