The AUDNZD pair on the weekly chart exhibits a bullish trend, characterized by an ascending trendline serving as a strong support area. The trendline has proven its efficacy by facilitating price rebounds on five occasions, marked by blue dots.
In the latest candlestick pattern, the price has formed a three black crows pattern, highlighted within a yellow box. This pattern suggests a potential bearish bias. If the bearish scenario unfolds, there is a risk of the trendline support being breached or experiencing a breakout. The breakout is anticipated to extend towards the 1.04-1.03 range, which has previously served as a rebound area.
Technical analysis is complemented by a fundamental perspective, with a focus on real interest rates. Currently, Australia maintains a real interest rate of -1.90%, while New Zealand stands at -0.50% factoring in overall inflation.
In summary, the technical analysis signals a potential bearish trend triggered by the three black crows pattern, with a target breakout zone of 1.04-1.03. The fundamental aspect reinforces this outlook, emphasizing the negative real interest rates in both Australia and New Zealand.
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