- AUD/NZD is extending weakness for a 2nd straight session, trades 0.18% lower on the day.
- We evidence a 'Shooting Star' formation at highs on Tuesday's candle which could plummet prices lower.
- The pair has broken below 5-DMA and is on track to test 200-DMA at 1.0862.
- Breach at 200-DMA support could accentuate weakness. Scope then for test of 1.07 (rising trendline).
- Technical indicators on daily charts are turning slightly bearish. Stochs are on verge of rollover from overbought and RSI is biased lower.
- Failure to break below 200-DMA to see bounce higher.
Support levels - 1.0873 (23.% Fib), 1.0862 (200-DMA), 1.0803 (20-DMA), 1.07 (trendline)
Resistance levels - 1.0919 (5-DMA), 1.0961 (May 25 high), 1.10
Recommendation: Good to go short on upticks around 1.09/0910, SL: 0.0965, TP: 1.0875/ 1.0860/ 1.08/ 1.07.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -138.016 (Bearish), while Hourly NZD Spot Index was at 110.712 (Bullish) at 0545 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
