Last week AUD/NZD was approaching a key resistance and I noted we should anticipate some selling. So far, price has edged a bit higher into that resistance zone.AUD/NZD 4H Chart 10/17(click to enlarge)Bearish Divergence:- Price moved up to 1.0764 before retreating again.- We are seeing a prolonged bearish divergence, which suggests that while the mode is still bullish, momentum is slowing down.At the crossroad:- While price retreated from the resistance zone, it is still above a key rising support seen in the 4H chart.- A break below 1.0650 would clear below a rising trendline, a 50-period simple moving average (SMA), and a support pivot.- This would open up the 1.05 area, or the common support around 1.0475. This is also where the rising channel since October began. Above 1.0775:- If price breaks above 1.0775 on the other hand, AUD/NZD would open up a bullish outlook.- The V-shape of the reversal since September suggests we could see further upside.- So, if there is a break above 1.0775 then we could anticipate upside risk to at least 1.10.AUD/NZD Daily Chart (click to enlarge)