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entering the next impulse within a large correction


AUDUSD

Scenario implementation: performed by

The Australian dollar started to decline in line with expectations, but only made it to the target. There was not enough potential to develop a full-fledged downward impulse. The price was once again stopped at 0.7677, bouncing from which the pair is now trying to recover. Thus, the formation of a wide sideways range becomes obvious, in which the pair continues to trade.

Nevertheless, the key levels have not been violated, so the previous scenario for a decline remains relevant. As part of the current recovery, the price is likely to test the upper end of the range again, where a new downward wave can be expected.

Forecast: downward corrective reversal
AUDUSD / NZDUSD: entering the next impulse within a large correction

At the moment, the level of 0.7779 may turn out to be a fairly strong resistance, and the area of ​​the latest highs at 0.7813 is the limiting border 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 0.7571 and 0.7525.

The scenario will be canceled if the last maximum is updated and the price moves above the reversal level at 0.7813.

NZDUSD

Scenario implementation: performed by

The situation in the New Zealand dollar is somewhat better. In this case, the pair really began to decline, but failed to fully reach the target area at 0.7094, although it stopped only a few points from it, after which the price began to reverse and grow. It is obvious that this pair is also traded within a flat.
AUDUSD / NZDUSD: entering the next impulse within a large correction

This adds a lot of uncertainty, but it can be assumed that the downward movement is still in the development stage. Now quotes are trying to recover, but they are approaching an important buffer zone, which will determine further prospects.

Forecast: downward corrective reversal
AUDUSD / NZDUSD: entering the next impulse within a large correction

The price is now close to the expected resistance at 0.7219 for a retest, in case of its passage, the limit will be the level of 0.7258. A rebound from this range will give a chance for a downside momentum to form, opening the way to lows in the 0.7051 and 0.7004 areas.

Cancellation of the current scenario will take place if the price moves above the reversal level located at 0.7258.

01/21/2021

Arman Beisembayev, Tickmill expert

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