Bulls Ready on AUD/NZD from 1.0707?

The Australian versus the New Zealand dollar currency pair seems to be under some bearish dominance. Still, are the bulls preparing a surprise?

Long-term perspective
The rise from the 1.0566 low extended until the 1.1043 high. As the high was labeled as part of a false piercing, the price dropped until the next firm support, 1.0826.
From 1.0826, the bulls attempted a comeback, but the bears ironed them out, unveiling the descending movement that stretches until the 1.0418 low.
Nevertheless, as the low happened to mark the head of an inverse head and shoulders pattern, the firm level of 1.0551 played the role of the neckline.
After it was pierced, the neckline fueled an appreciation that — after a pause that took the shape of a consolidation phase bounded by 1.0707 as resistance and the intermediary level of 1.0630 as support — extended until the 1.0842 high.
Once more, the bears manifested their will around the 1.0826 area, printing a decline that sent the price just under 1.0707.
If the bulls do manage to validate 1.0707 as support, then they have another shot for 1.0826, which, for the time being, is their first profit booking area.
However, if 1.0707 is turned to resistance, or if the fall simply continues, then 1.0631 gets exposed.

Short-term perspective
From the 1.0627 low, the price rose above the 1.0681 intermediary level. After a short consolidation phase, the march continued toward the north, defining the 1.0842 high.
Being an area packed with bears, 1.0820 determined a fall, one that -as of writing — oscillates above 1.0681.
Still, if 1.0681 is validated as support, then 1.0741 may be the next bullish objective.
On the flip side, if 1.0681 cedes, then 1.0621 may be paid a visit.

Levels to keep an eye on:

D1: 1.0707 1.0826 1.0631
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