AUDNZD has been drawn into a choppy market after plummeting over 600 pips in the second half of 2020. Since then, two separate attempts to shift the dynamic to the upside have failed.
We now see prices trading firmly within the Ichimoku cloud. The golden ratio of 61.8% of the 1.1027/1.0414 downside Fibonacci leg is currently acting as a resistance.
The recent standard and hidden divergences could signal a change in the trend, as bulls look at another attempt to the upside.
Should prices move past the specified level, then a reversal of 2020 losses could come into play.
A shorter intraday outlook shows that prices have recently fallen out of a month-long ascending channel.
The strong bearish divergence weighed in on sentiment, as prices fell away from the 1.08 handle. We now wait to see if the lower border of the Ichimoku cloud will act as a firm resistance, or if a trend to the upside can prevail.
The high end of the 1.07 region will be a significant test if prices will move back into the channel. Once there, then monthly highs could come into play.