AUD/NZD had strong support around the level of 1.0740 that had been rejected for at least 4 times. Nevertheless, the price sliced through this massive support on May 22 that could be strong confirmation of the AUD/NZD being under selling pressure.
Applying the Fibonacci to the support breakout point, the R1 resistance level comes into play. The price is currently rejecting 38.2% Fibs and very successfully. At the same time we can see the pair printing lower lows and lower highs adding more confidence to the validity of the trend down.
Consider selling AUD/NZD near R1 (1.0700), which is Fibs as well as psychological resistance level. Target is 0% Fibonacci that is S2 (1.0585) support area. Only a break above R2 (1.0737) will invalidate this scenario.
Support: 1.0657, 1.0585
Resistance: 1.0701, 1.0737,
The material has been provided by InstaForex Company – www.instaforex.com