FxWirePro: AUD/NZD breaches channel base support, on track to test 88.6% Fib, stay short

• AUD/NZD has shown a breach at channel base support at 1.0590, raising scope for further weakness.
   
• Minor recovery attempts on the day were rejected at session highs at 1.0595.
   
• A 'Death Cross' formation (bearish 50-DMA crossover on 200-DMA) on daily charts adds to bearish bias.
   
• Technical indicators are biased lower. RSI is weak below 50 levels and Stochs are biased lower.
   
• Price action hovers around 1.0567 (78.6% Fib) and now finds next major support at 1.0475 (88.6% Fib).
   
• On the flipside, retrace above 5-DMA at 0.0609 could see upside till 20-DMA at 1.0695. Breakout at 20-DMA invalidates bearish bias.

Support levels - 1.05, 1.0475 (88.6% Fib), 1.0412 (June 14 low)

Resistance levels - 1.0590 (channel base), 1.0609 (5-DMA), 1.0695 (20-DMA), 1.0721 (61.8% Fib)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-NZD-finds-major-trendline-support-at-10615-good-to-go-short-on-break-below-1220510) has hit TP1.

Recommendation: Book partial profits at lows. Hold for further downside.

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