Last week’s price action on AUDNZD currency pair developed interestingly. After many weeks of slow drops, buyers returned to the market, and it was not in an accidental place.
As can be seen in the AUDNZD weekly chart below, the price collapsed after an effective resistance test in the vicinity of 1.0723. The sellers managed to abolish all the increases generated in March and April this year.
However, after drawing new minima under the March low, buyers appeared on the market. Only on Tuesday and Wednesday the bulls managed to make up for the losses from the previous 19 sessions. The result was a large bullish candle with a long shadow on the chart. In addition, the MACD indicator turned green and there was a bullish divergence.
With this in mind, it is likely that the increases will continue in the medium term. The nearest resistance in such a scenario is around 1.0723. However, the supply zone starts much lower, around 1.0600.
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