Another test of important support

AUDNZD has remained above 1.0640 support since mid-February 2017, and each test of this level has so far ended in a dynamic rebound. The last test was 3 weeks ago and it was almost vertical. The reflection was almost 300 pips up.

Also today 1.0640 support was tested. In the first moment the demand comed in and the graph shows a long lower shadow on D1 interval. Most of the session is still ahead of us and it can not be ruled out that the supply will win here. It is important now to observe this key level as the behavior of the price on it will indicate a further scenario.

Possible scenarios

If level 1.0640 is broken, the nearest support level is 1.0570. After successfully breaking the latter, goal will be the area 1.0340 – lows of 2017.

AUDNZD H4
AUDNZD H4

Alternatively, if demand had won the current battle and successfully defended support 1.0640 the nearest target would be 1.0740. After its breaking, the target will be round 1.1000 level, which is the maximum of 2017.

AUDNZD D1
AUDNZD D1

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