Last week the Australian Dollar encountered a resistance against the New Zealand Dollar, which caused a decline of the pair. Using that direction changing Fibonacci retracement level for pattern drawing, one can spot the medium term ascending channel pattern.
The pair is expected to decline down to the weekly PP, which is located at the 1.1070 mark. Afterwards it should continue to trade horizontally until it reaches the support of the channel up pattern.
Later on, as the currency exchange rate finds support in the combination of the mentioned levels, a surge up to the resistance cluster near the 1.12 mark should begin.