AUD/NZD has been trading in ascending channel valid since mid-September. The rate has already provided several confirmations, the latest of which was when the Aussie bounced off its bottom boundary circa 1.0907.
The rate’s movement during the past two weeks has been guided by a falling wedge. As a result of a strong upside momentum early on Wednesday, the rate re-tested its upper boundary, the 50.0% Fibonacci retracement and the 200-hour SMA.
Technical indicators suggest a soon rebound from their overly bullish positions. Thus, the Aussie could respect the wedge and consequently push lower.
In the short-term, the target could be 1.0945 area where the 55-hour SMA, the monthly PP and the 38.2% Fibo are located, while traders could see a subsequent surge from this territory.