By: Colin Jessup
The AUD/NZD traded as high as 1.3058 during the UK & New York sessions yesterday before falling and closing lower than it opened at 1.2982. The pair stopped its ascent 1 pip short of the Monthly R2 level of 1.3059 and closed below the weekly R1 level of 1.2999 indicating that higher prices were clearly out of the question and lower prices were soon to follow. We didn't have to wait long to see the Aussie plummet more than 60 pips in the first half of the Asian session seemingly coming to a stop at the Daily S2 of 1.2900 and just above the Daily Moving Average at 1.2897. There is plenty of support to be concerned about to the downside with the Weekly Pivot at 1.2886, Daily S3 at 1.2863 (matching up with the Monthly Pivot at 1.2861) and the Weekly S1 at 1.2818. While the trend may resume its bearish tone, there is a high probability that price will turn bullish during the next 16 hours and at least pull back to 1.2959 where the Bulls will encounter the Monthly R1.
Happy Trading!