The AUD/NZD has been consolidating in December after a bearish November. Let’s see what we can expect as we await a breakout.
The range in December roughly between 1.0760 and 1.0870 follows a November decline from 1.1304. Now, the bias is bearish, especially if price can hold below 1.0810, the middle of the range. This would maintain a bearish outlook, and a break below 1.0755 should open up the 1.0640-1.0650 area lows form July. A break above 1.09 might be needed to open up further bullish correction, and a hold above 1.0810 might be needed to confirm December’s range so far as a price bottom. Even then, we need to monitor the 1.0950-1.10 area for resistance because this is the previous support are for a multi-month range. At max, our bullish outlook should be limited to the 1.1050 area, where there is a key support/resistance pivot, and where the 100-, and 50-day SMAs reside.
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