AUD/NZD may fall to 1.0400
By Dima Chernovolov
• AUD/NZD reverses from resistance zone
• Likely to fall further to 1.0400
AUD/NZD recently reversed down from the resistance zone lying at the intersection of the multiple resistance levels: the resistance level 1.0800, the 50% Fibonacci Correction of the previous primary impulse ① from last October and the former support trendline of the recently broken daily up channel from the start of 2014 (which is acting as resistance now after it was broken in December). The downward reversal from this resistance zone completes the previous primary correction ②.
AUD/NZD is likely to continue to fall in the next primary downward impulse ③ toward the next support level 1.0400 (which stopped the previous primary impulse ① in January). Protective sell stop-loss can be placed above the aforementioned resistance level 1.0800.