AUD/NZD Price Analysis: Bears waiting in the wings for an opportunity

• AUD/NZD has been building the case for the downside.
• Bears wait patiently for bearish structure and a test higher. 

The case for a downside extension is compelling and the following illustrates the thesis in a series of charts, starting with the weekly outlook, and then drilled down into the daily and 4-hour market structures.

Weekly chart

There is a bullish case given the M-formation. 

A fuller test of the upside would be expected at this juncture prior to the next bearish leg. 

Daily chart

The price has already made a significant correction according to the measurement of the Fibonacci retracements. 

However, there could be some upside left in the price before it meets a 50% mean reversion and the confluence with the 21-day EMA and resistance structure.

4-hour chart

The 4-hour chart is very choppy and too risky to be looking for a setup until bearish structure is formed.