FxWirePro: AUD/NZD holds support at daily cloud, further weakness likely on break below

• AUD/NZD is extending decline after break below strong support at 1.0787, bias lower.
   
• The pair has paused downside, trades 0.35% higher on the day, at 1.0753 at the time of writing.
   
• Price has held support at daily cloud at 1.07 levels, weakness to resume on break below.
   
• That said, bearish divergence on Stochs keeps scope for further weakness.
   
• Technical indicators are turning bearish. Stochs are biased lower and RSI has slipped below 50 levels.
   
• Break below daily cloud raises scope for test of 61.8% Fib at 1.0668.
   
• On the flipside, 1.0785-1.0813 is stiff resistance zone. Decisive break above to see bearish invalidation.

Support levels - 1.0787 (nearly converged 55 and 110-EMA), 1.0724 (50% Fib), 1.07 (cloud top), 1.0668 (61.8% Fib)

Resistance levels - 1.0777 (5-DMA), 1.0813 (21-EMA), 1.0849 (23.6% Fib)

Recommendation: Good to go short on break below 1.0785, SL: 1.0840, TP: 1.0725/ 1.07/ 1.0670 

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-NZD-holds-strong-support-at-10787-weakness-only-on-break-below-1360176) is progressing well.

Recommendation: Hold for further weakness.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -114.33 (Bearish), while Hourly NZD Spot Index was at -110.829 (Bearish) at 0915 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.