AUD/NZD Correction Nears Projection

4H: The AUD/NZD pair stayed below 1.31 and finished a second correction. The swing projection near 1.2860 has not been reached yet, but the conservative swing projection, which uses the previous swing without the tail, has been hit.

It is in the form of a bullish gartley which completed near 61.8% retracement level around 1.29.

The stochastic is oversold, and is crossing over but has not rolled up yet. In the previous post, we established a couple of scenarios as a result of this decline. The current support can create a bottom and a strong rally can result. But we see more significant support below.

Daily: The daily time-frame shows strength in the intermediate term but weakness in the short-term. The short-term weakness is not over, or at least not signs of it being over has been shown.

The market can still decline further in context of a rising channel. Refer to previous post for weekly chart. So when you look back at the 4H chart, even though it has completed a retracement pattern, we have to also note a broken short-intermediate rising trendline. Along with the strong bearish action in the daily, anticipate some further decline.

The overall trend is bullish, so when the decline is over, and a bullish attempt is seen (higher highs and lows), a continuation towards 1.35 is possible.

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