In recent weeks, both the Australian dollar and New Zealand generally show weakness. Looking at these currencies in pair with each other, we are dealing with a rather broad consolidation that lasted from the second half of August. Apart from short false breakouts, the price was still between support at 1.0850 and resistance at 1.0980. In recent days, however, there has been a break below this range.
Breaking out from the channel
The AUDNZD price fell below the support at 1.0850 after a dynamic drop from Monday. We now see that there has already been a retest of the broken level, so far it has been successful. It can be a great opportunity to enter a short position.
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To look for a goal for a short, you need to look at the wider sentiment. On the daily chart, we see that the next support is at 1.0680, where the price was last time in mid-June. In the case of the opening of the short, it is just a bit above this level that I recommend taking a Take Profit order.
