[B]Currency Pair: [/B]AUD/NZD
[B]Chart: [/B]15 Min Charts
[B]Short-Term Bias:[/B] Short
The AUD/NZD has come under selling pressure after peaking to 1.28 in July, and has broken the uptrend initiated at the beginning of 2008. In the past 24 hours, price action fell below the short-term support at 1.2241 (21.4 Fib level), which may turnout to be the new resistance level for the pair.
We expect the AUD/NZD to hold within the channel, and anticipate price action to fall back towards the lower channel in the next few trading sessions as the downward trend in the RSI provides confirmation to our outlook. Price action has also crossed over the 120 SMA line over the last 24 hours, which brings us to the conclusion that the downward momentum may lead the pair to test for support at 1.2128 (psychological level). Over the next few months, we expect the AUD/NZD to hold course, and may break well below 1.20 in the coming months.