AUDNZD recently reversed down from the resistance area lying between the long-term resistance level 1.08640 (monthly high from November) and the upper daily Bollinger Band. The downward reversal form this resistance area created the daily reversal pattern Shooting Star. Given the clear bearish divergence on the daily Stochastic indicator and the rising bearish Australian dollar sentiment seen across the markets today – AUDNZD is likely to extend the losses toward the next support level 1.06740 (low of the previous correction (iv)).
