AUD/NZD formed a short term top at 1.0840 on overbought condition and turn into corrective fall. While some more downside is likely in the cross, we’re not expecting a complete reversal in fortune. Downside of pull back should be contained by 38.2% retracement of 1.0415 to 1.0840 at 1.0678, which is close to 55 day EMA (now at 1.0688). Above 1.0788 minor resistance will bring retest of 1.0840 resistance first.
However, firm break of 1.0678 would bring deeper fall to 61.8% retracement at 1.0577. Overall, the depth of the correction could eventually determine how far the rise from 1.0415 would extend to.
