Last week, the AUD/NZD closed with a 180 pip Bullish Engulfing candle off of the Weekly Support zone at 1.2900 suggesting prices would remain bullish. The daily chart is now forming a Bullish Ax pattern supported by the Weekly Pivot at 1.2972, possibly confirming what the weekly candle was suggesting. Although price action has been mostly bearish in the first 24+ hours of the trading week, this might be in part due to no significant fundamentals from the UK or USA on Monday and traders are covering their positions for a bumpy week ahead, or simply in anticipation of higher prices to come. NZD core impact sales numbers were better than expected which has provided the Kiwi with a slight bump in strength, it might not be enough to keep the bears at bay and the bulls will regain their footing once the higher volume markets open starting with the London Session in just under 2 hours from time of writing. Key levels to look for will be the 4 hour 62 EMA at 12969, as well as the Daily S1 at 1.2960, DS2 at 1.2940 and the Monthly Pivot at 1.2922 as far as support is concerned. From the resistance perspective, look for it at 1.2990, 1.3014 & last weeks high at 1.3043. Although the bears might seem like they are in full control at the moment, I remain bullish on this pair above 1.2890.
