After an extended downtrend, AUD/NZD is showing signs of strength while forming bullish divergence. At the same time, the pair broke above the 50 Moving Average with a confirmed close above it.
The Fibonacci applied to the channel breakout point shows that price found the support at 23.6% (1.0280) on the 7th of September which later was broken. This could mean that the longer term downtrend is not over yet but correction up can be expected.
Consider buying AUD/NZD on small corrections down near 1.0300 psychological level, targeting one of the Fibs resistances. The first is at 38.2% (1.0370), the second one is 50% (1.0440), and the third one is 61.8% (1.0510). Stop loss should be below the lowest low at 1.0237.
Support: 1.0280
Resistance: 1.0370, 1.0440, 1.0510
