AUD/NZD may rise 37 - 57 pips

1.0840 is our pivot point.

Our preference

Rebound towards 1.0920.

Alternative scenario

The downside breakout of 1.0840 would call for 1.0810 and 1.0790.

Comment

The RSI is below 30. It could either mean that the pair is in a lasting downtrend or just oversold and therefore bound to retrace (look for bullish divergence in this case). The MACD is negative and above its signal line. The configuration is mixed. Moreover, the price stands below its 20 and 50 period moving average (respectively at 1.0874 and 1.0894).

Supports and resistances

1.0950 **

1.0940 *

1.0920 **

1.0900

1.0863 last

1.0850

1.0840 **

1.0810 *

1.0790 **

Number of asterisks represents the strength of support and resistance levels.