After forming a top near 1.1085 on November 24, 2015, AUD/NZD started to move lower and print new lower lows. Meanwhile, the pair also managed to break below both the ascending and descending channels suggesting the formation of a short to medium-term downtrend.
The price closed below the Fibonacci downside target, which is based on the breakout of the ascending channel. The Fibonacci applied to the breakout of the descending channel shows that the downside target has not been reached, while the 61.8% resistance has been rejected today.
Consider selling AUD/NZD near the R1 (1.0950) resistance level targeting the S3 (1.0800) support area. Stop loss should be placed well above the R2 (1.0990). Only daily close above R2 could change the direction of the trend and push the pair much higher in the longer term.
Support: 1.0890, 1.0855, 1.0795
Resistance: 1.0950, 1.0990, 1.1050
