This Aussie pair appears to be in correction mode, as worth is closing in on the Fibonacci retracement ranges and descending pattern line.
Is the long-term pattern nonetheless our pal on this one?
Check out these inflection factors on the 4-hour timeframe:
AUD/NZD 4-hour Foreign exchange Chart by TradingView
Rumors that the U.S. and China are engaged on de-escalating commerce tensions seem like propping the Australian greenback up recently.
Nonetheless, China has simply clarified that President Xi and Trump haven’t but had any direct communication, which implies that it’s nonetheless attainable for tariffs tensions to flare once more.
In the meantime, the Kiwi may regain some assist due to a little bit of distance from the U.S.-China commerce spat, in addition to a rebound in its dairy sector.
Are we about to see AUD/NZD resume its downtrend quickly?
Do not forget that directional biases and volatility circumstances in market worth are sometimes pushed by fundamentals. In the event you haven’t but accomplished your homework on the Australian and New Zealand {dollars}, then it’s time to take a look at the financial calendar and keep up to date on every day basic information!
The pair is already closing in on the 38.2% Fibonacci retracement degree close to R2 (1.0800) and a serious psychological degree, which may entice promoting curiosity sufficient to place AUD/NZD again in selloff mode.
Maintain an eye fixed out for a bigger pullback to the 50% Fib which traces up with R3 (1.0860) or all the way in which as much as the 61.8% degree nearer to the long-term descending pattern line resistance.
If any of those are in a position to maintain positive aspects in examine, look out for a continuation of the droop to the swing low close to S1 (1.0670) or decrease. Alternatively, a break above the pattern line near the 1.0900 mark may counsel that main reversal is within the works.
As all the time, be careful for different top-tier catalysts that would affect general market sentiment, and be sure to apply correct place sizing when taking any trades!
