Hello traders! The AUD/NZD has been showing a great demand zone near 1.0300 psychological support. A number of times price has bounced off that area, which indicates a strong buying interest.
This could lead to an upside rally, ideally, towards the 200 Exponential Moving Average. The EMA can act as resistance, along with the downtrend trendline and 23.6% Fibonacci resistance level.
On the 1H timeframe, the price started to produce higher highs and higher lows, indicating a potential uptrend. At the same time, the descending channel has been broken and now price approaching the strong support zone.
The support is seen at 1.0435 level, which corresponds to the 50% Fibonacci retracement level. But also, it goes inline with the 200 EMA on the 1H chart. This should be a price of interest, however, AUD/NZD can also go lower and hit the 61.8% Fibonacci level at 1.0423.
Overall, 1.0435-1.0423 is the demand zone and can be a very good entry point for buyers. We are looking at a longer price movement and therefore stop losses are likely to hold if placed below 1.0384. Break below this level will invalidate bullish forecast and can send AUD/NZD price even lower. Nevertheless, while the support area is holding, we can expect a pair to rise as high as 1.0700, which is a potential 250 pip upside move in the coming days.
Bias: Bullish while above 1.0384
Potential Support Zone: 1.0423-1.0434
Potential Targets: 1.0700
Have a profitable trading!