- AUD/NZD has shown a break below major trendline support at 1.08, we see scope for further weakness.
- The pair is extending downside after break below 200-DMA at 1.0884, bias lower.
- Technical indicators are biased lower. RSI slips below 50, bias lower. Momentum bearish.
- MACD is showing a bearish crossover on signal line adding to bearish bias.
- Price action is currently hovering around 55-EMA at 1.0773, break below will see next major support at 61.8% Fib at 1.0668.
- Upside finds immediate resistance at 1.0815 (trendline). Break above 5-DMA at 1.0835 could see test of 200-DMA (1.0883). 200-DMA breakout negates bearish bias.
- Focus now on the Reserve Bank of Australia’s (RBA) monetary policy decision, scheduled to be held by early next week.
Support levels - 1.0780 (38.2% Fib), 1.0773 (55-EMA), 1.0668 (61.8% Fib)
Resistance levels - 1.0815 (trendline), 1.0834 (5-DMA), 1.0883 (200-DMA), 1.09
Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-NZD-retraces-break-above-200-DMA-stay-short-below-108-trendline-support-1342390) has hit TP1.
Recommendation: Bias lower, stay short.
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