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
The material has been provided by InstaForex Company – www.instaforex.com