FxWirePro: AUD/NZD breaks major support at 1.0650, bias lower, stay short

• AUD/NZD has shown a break below major support at 1.0650, intraday bias lower.
   
• The antipodeans weaker after Moody’s downgraded China’s rating.
   
• Moody’s has downgraded China’s long-term local currency and foreign currency issuer ratings to A1 from Aa3 and changed the outlook to Stable from Negative. 
   
• Further New Zealand reported April trade surplus at 2-year high of $578 million, the highest since 2015, adding downside pressure on the pair.
   
• The pair was rejected at 50-DMA on May 19th and we have seen a decisive break below 100-DMA on Monday's trade.
   
• Technical indicators on the weekly charts are also bearishly aligned. Next major support below 1.0650 lies at 200-DMA at 1.0598. 

Support levels - 1.0628 (61.8% Fib of 1.0237 to 1.1019 rise), 1.0598 (200-DMA), 1.0535 (61.8% Fib)

Resistance levels - 1.0650 (trendline), 1.0700 (5-DMA), 1.0720 (38.2% Fib), 1.0753 (20-DMA)

Call update: We had advised a short in our previous call (http://www.econotimes.com/FxWirePro-AUD-NZD-finds-major-support-at-10650-good-to-go-short-on-break-below-717163).

Recommendation: We recommend holding for targets.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -75.3083 (Bearish), while Hourly NZD Spot Index was at 95.254 (Bullish) at 0330 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.