Bulls Actually Aiming for 1.0707 on AUD/NZD?

The Australian versus the New Zealand dollar currency pair seems not to be willing to let the bears play their part.

Long-term perspective
The rise that started from the 1.0566 low extended until the 1.1043 high before allowing a new downward movement to take shape.
Nevertheless, after not being able to stabilize the price above the 1.0983 level, the bulls had to acknowledge that they need a break.
As a consequence, the bears took over, defining the descending trend that ebbed until the 1.0418 low.
From the low, as expected, a corrective swing came into being, one that, again, as expected, stalled under the firm resistance area of 1.0551.
Of course, the bears were prepared to drive the price towards the south. However, the bulls decided to test the upper line of the falling channel.
By doing so, the bulls defined on the chart an inverted head and shoulders pattern with the heat at 1.0418, the left-side shoulder resting on the 1.0474 intermediary level, and the right-side one crafted by the 1.0513 low that resulted after the surprise bullish attempt.
So, with the pattern’s neckline — played by 1.0551 — pierced and a determined bullish candle that closed slightly above the outer rim of the channel, the die has been cast, as the bulls only had to keep the momentum going.
That is why the bearish struggles at 1.0631 to turn the price around proved futile. So, as long as 1.0631 remains support, 1.0707 is the first bullish objective.
Only 1.0631 becoming resistance could attract more sellers that would, in turn, send the price to 1.0551.

Short-term perspective
After the falling trend ended at the 1.0418 low, the bulls set in motion an ascending one with some very pronounced up-swings and two consolidation periods, the first sitting on 1.0515 and forming the right-side shoulder of the head and shoulders pattern described on the long-term perspective, while the second oscillated above 1.0621.
If 1.0681 becomes support, then 1.0741 is the next bullish aim. On the flip side, if the 1.0681 level remains resistance, then a range trading phase, with 1.0621 acting as support, could be in the cards.

Levels to keep an eye on:

D1: 1.0631 1.0707 1.0551
H4: 1.0681 1.0741 1.0621

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