AUDNZD has seen a significant downtrend since August which has seen prices drop to 1.06.
Bears are currently testing the long-term lower descending channel as a previous attempt to move out of the range failed.
With a hidden bearish divergence evident, another fall out of the specified channel could be likely.
With prices trading far away from the Ichimoku cloud, the next target would be the 50% of the downside Fibonacci leg. We now look towards 105.50 for any potential support.
A short-term perspective shows a slight pullback with prices attempting to trade between the convergence and baseline of the Ichimoku indicator.
A bounce at the lower descending channel could favor bulls in the market, as another attempt at the mean could ensue.
With the divergence noted on the momentum indicator, if a break past the 23.6% of the 1.0894/1.0589 Fibonacci leg is successful, then the 50% will be the next target.
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