Header Ad

AUDUSD / NZDUSD: Slowly Deeper Into Correction


AUDUSD

Scenario implementation: performed by

The Australian dollar continued to decline in line with expectations, but has not yet reached the target area. Presumably, reaching the upper limit of this area is a matter of time. Nevertheless, the script is still in the execution phase. The pair presumably bounced off the resistance at 0.7779, after which it reached the lower boundary of the formed range at 0.7677, from which it tried to start growth, but already in the middle of the range, the attempt was repelled, which led to a subsequent decline beyond the flat.

Thus, the downward correction has entered a phase of active development and the decline still has a potential for decline. Therefore, the previous scenario remains valid, with the establishment of a new target area for price movement.

Forecast: continuation of the downward movement
AUDUSD / NZDUSD: Slowly Deeper Into Correction

At the moment, the level of 0.7677 may turn out to be a fairly strong resistance, and the area of ​​the middle of the flat at 0.7734 is the limit for the movement. This gap acts as a buffer zone, from which a subsequent rebound can be expected, which will give a chance for the formation of a downward impulse with a target in the area between 0.7525 and 0.7500.

The scenario will be canceled if the price moves above the reversal level at 0.7734.

NZDUSD

Scenario implementation: performed by

The picture is similar in the New Zealand dollar. But here the pair traded for a long time in a narrow range between 0.7177 and 0.7219, then tried to break through the resistance at 0.7219 and entered the buffer zone, where it could not gain a foothold, starting a decline. The target area has not been reached either, the price is still halfway there. Obviously, reaching this area is a matter of time.
AUDUSD / NZDUSD: Slowly Deeper Into Correction

Here, the correctional phase is also at the stage of its active development. Probably, the decline still has the potential to continue. Therefore, the previous scenario remains unchanged.

Forecast: continuation of the downward movement
AUDUSD / NZDUSD: Slowly Deeper Into Correction

Now the price is testing a fairly strong support level, the retention of which may lead to a local corrective price recovery to the resistance at 0.7177, although an option with an immediate downward breakdown is also quite possible. A confirmation of intentions for further decline will be a pullback from this zone with an update of the local minimum. The targets for reaching are the same – this is the area from 0.7051 to 0.7004.

Cancellation of the current scenario will take place in case of growth above the reversal level at 0.7219.

01/28/2021

Arman Beisembayev, Tickmill expert

The best trading conditions on a PRO account

More materials in our telegram channel: Tickmill

DFMFOREX

An interactive magazine for Forex traders. Here you will find the latest relevant news, examples of successful transactions and unsuccessful investments. Our journal contains a daily report of the trade of our specialists on the Forex exchange.

Forgot Password