Inverted cup & handle pattern observed on AUD/NZD daily charts, price action is well below the cloud, RSI is at 33 and biased lower.
- Pair tests trendline support at 1.0583, breaks below could target 1.05 levels, watch for AUD/NZD close below 1.0615 for further weakness.
- Consistent lower highs maintains downside pressure, momentum studies are neutral, 5, 10 & 20 DMAs trend south.
Recommendation: Good to sell rallies around 1.0620, SL: 1.0690, TP: 1.05
Resistance Levels:
R1: 1.0628 (5 DMA)
R2: 1.0660 (Session high Dec 21)
R3: 1.0680 (Dec 18 high)
Support Levels:
S1: 1.0583 (Trendline support)
S2: 1.0558 (Oct 29 low)
S3: 1.0572 (Oct 23 low)
