AUDNZD Top-Down Analysis

Hello Traders,

Here is the Top-Down Analysis of AUDNZD (Monthly, Weekly, Daily for direction and 4H for entry) for

Week 45 - Nov 02

M > Price is respecting downward trend-line as resistance. It faced rejection at resistance level and completed W formation, it continued to drop to test monthly support.

W > After dropping to complete W formation price pulled up till 0.786 Fib level on bearish impulse and continued to drop till -0.618 Fib level on last bullish impulse. We can now expect a pull up for correction, we see an M formation and its neck is in between 0.382 and 0.5 Fib level on bearish impulse.

D > We can see two odd candles in bearish impulse, which will now act as supply zone.We can see another M formation in D chart. Bearish move has already lost its momentum and we can expect a reversal soon.

As per COT AUD saw closure of both Long and Short, improving net positions. AXY gained some lost position during the said week but dropped to test support level again last week. Any break further to the downside will be interesting opportunity to watch for. NZD saw addition of both Long and Short improving net positions to max for the year, whereas ZXY gained strength during the said week but it weakened last week. ZXY has been gaining strength slowly since June 2020 hence we can expect stronger NZD this week.
Weak AUD and strong NZD can push price toward consolidation.

4H > We can see bullish divergence. Price has been consolidating at current support level for past few days and this situation an continue before price pushes for an upward move.

Pair Correlation > AUDNZD has positive correlation with AUDJPY.

Thank You
AP17FX