AUDNZD Technical Analysis Report 20 November, 2020

  • AUDNZD broke key support level 1.0540
  • Likely to fall to 1.0430

AUDNZD continues to decline after the pair broke the key support level 1.0540 (former monthly low from July, which also reversed the previous minor impulse wave (i) at the start of November). The breakout of the support level 1.0540 coincided with the breakout of the 50% Fibonacci correction level of the previous extended upward impulse from March. The breakout of the support level 1.0540 should accelerate the active downward impulse waves 3 and (C).

Given the strength of the active impulse sequence (C) and the strengthening bullish sentiment affecting the New Zealand dollar today – AUDNZD can be expected to extend the losses toward the next support level 1.0430 (target price for the completion of the active minor sub-impulse wave 3).

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