AUD/NZD bounces off Fibonacci retracement
Last week the Australian Dollar encountered a resistance against the New Zealand Dollar, which caused a decline of the pair. Using that direction changing Fibonacci retracement level for pattern drawing, one can spot the medium term ascending channel pattern.
The pair is expected to decline down to the weekly PP, which is located at the 1.1070 mark. Afterwards it should continue to trade horizontally until it reaches the support of the channel up pattern.
Later on, as the currency exchange rate finds support in the combination of the mentioned levels, a surge up to the resistance cluster near the 1.12 mark should begin.
The pair is expected to decline down to the weekly PP, which is located at the 1.1070 mark. Afterwards it should continue to trade horizontally until it reaches the support of the channel up pattern.
Later on, as the currency exchange rate finds support in the combination of the mentioned levels, a surge up to the resistance cluster near the 1.12 mark should begin.
Trade fechado: objetivo atingido:
The previous forecast was right in the medium term.
However, the junior pattern's lower trend line did not manage to hold its ground in the long term, and eventually the Aussie lost ground against the New Zealand Dollar.
However, the junior pattern's lower trend line did not manage to hold its ground in the long term, and eventually the Aussie lost ground against the New Zealand Dollar.
After meeting the 61.80% Fibonacci retracement level of the 2016 low and 2015 high levels the Aussie has been declining against the New Zealand Dollar. The fall of the rate has been occurring simultaneously in two descending channel patterns.
The next target for the fall of the pair is the weekly S2, which is located at the 1.0841 level. Afterwards the pair should continue the decline down to the combined support of the 38.20% Fibonacci retracement level and the monthly S1, which both are located just below the 1.08 mark.
Meanwhile, there are some significant fundamental events about to occur. For example, the New Zealand Parliamentary elections take place this weekend.