While AUD/NZD is moving up in the short term, the previous area of resistance near 1.1100 has been rejected. The pair formed a bearish divergence that could signal a short-term correction or even potential reversal to the downside.
Today, there are two ways to trade this pair. The first one is to sell at the current level, which would offer a higher risk reward ratio. Another is to trade on the breakout of the 23.6% Fibonacci retracement level. The target is seen near 50% (S3 - 1.1020) Fibonacci In both cases as it previously proved to be the key support. A hard stop loss should be placed just above R1 (1.1097).
Support: 1.1060, 1.1040, 1.1020
Resistance: 1.1100
