Direct from the desk of Dane Williams.
While AUD/NZD never reached new highs, price has continued to respect both the higher time frame support/resistance zones that are so close together up here.
Since the last time we spoke about the currency cross, price did actually make new highs... A 50 pip wick that was immediately rejected and AUD/NZD has been a bearish playground ever since.
Take a look at the daily below.
AUD/NZD Daily:
You can now see that price has retested one of the daily zones again, this time reactivating it as resistance.
The only thing going against the bears here is the fact we have this daily trend line that has forced price to coil into somewhat of a triangle, acting as support.
For me right now, the horizontal daily resistance zone holds a lot more weight than that subjective trend line, but in terms of day trading around the line, it certainly could cause some risk management problems.
If we're trading from the short side, we certainly want to be entering still on short term retests, but just a lot closer to the daily zone.
See what happens into next week if price comes back up toward it.
Best of probabilities to you,
Dane.
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Higher time frame market analysis.