Australia's Dollar has been on full charge against it's New Zealand counterpart for over two weeks. Since the beginning of this aggressive price action, the pair has oscillated against support as identified on the chart below by the upward sloping yellow line.
For the last five trading sessions, price action has deviated from this bullish stance and has been traveling in an increasingly consolidated form.
We can see now that AUDNZD has returned to the old upward sloping support line. Traders may was to to wish for a breakout above the shorter-term resistance level, as identified by the downward sloping white line, for a return to bullish momentum. On the contrary, a daily close below yellow support may indicate a reversal of the two-week trend.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.
