As a result of ongoing on AUD/NZD losses since April 2011, it reached level around 1.0020, where in April 2015 a demand response occurred. Since then, we have seen the pair moving in horizontal trend (consolidation), which upper limit coincides with the 38.2% Fibonacci adjustment.
Definitely better this 3.5 year consolidation can be seen on weekly chart.
Looking at H4 due to last week’s upswing market reached local resistance, where supply response has already occurred. Permanent rejection of this level could open the way to recession.
On 15 minute chart, we will notice that market has already broke bottom of local consolidation and when re-testing has rejected its lower limit. If downward trend continues then in nearest future we would expect a re-test of broken yesterday level 1.0465
