Correction targeting 1.0750
For almost 1.5 week we see declines on AUDNZD. The earlier almost vertical bullish movement (launched at the end of January) is currently being corrected with similar dynamics. The target of supply is the previous strong resistance, and now the new support level at 1.0750. This place bulls should defend with all its power because its breaking would be a strong bearish signal.
Potential for further growth within the inverted H&S formation
Breaking in early March resistance 1.0750 was at the same time the breakout of the neck line of the large inverted H&S formation. The range of upward movement measured from neckline to the top of the head indicates a further growth potential in region of 1.1260 – 1.1290 ( area of highs of the last 18 months).
Earlier, however, may appear previously mentioned key test of 1.0750 . After his successful defense, AUDNZD has a potential for further growth, which can reach up to 500 pips.