Since the end of August, the AUD/NZD exchange rate has been declining, guided by a descending trend line.
From a theoretical perspective, it is likely that some downside potential could continue to prevail in the market, and the currency pair could target the Fibo 38.20% located at 1.0656.
On the other hand, it is likely that the exchange rate could gain support from the 55– and 200-period SMAs near 1.0880 and extend gains. In this case the rate would have to exceed the 1.1050 level.
