By: Dima Chernovolov
AUD/NZD continues to fall in the direction of the key support level (of the type approach) 1.0685, which was previously identified by Autochartist on the 15-minute charts. Autochartist rates the significance of this key support level at the 5-bar level – which is the result of the 5 previous price reversals from this price level. AUD/NZD is expected to fall toward the support 1.0685 – in line with the earlier downward reversal from the major resistance level shown below.
As can be seen from the weekly AUD/NZD chart below – the price earlier reversed down sharply from the powerful, multi-month resistance level 1.0865 (yearly high from last year) – standing close to the upper weekly Bollinger band. The proximity of this resistance level increases the probability the pair will continue to fall toward the key support level 1.0685.