- AUD/NZD is consolidating break below 78.6% Fib retracement of 1.03706 to 1.12899 rally at 1.05673.
- Price has edged higher from fresh 8-month lows at 1.0526, bias still bearish.
- Technical indicators are biased lower. RSI is weak below 50 levels and Stochs are biased lower.
- A 'Death Cross' formation (bearish 50-DMA crossover on 200-DMA) on daily charts keeps scope for downside.
- Price action now finds next major support at 1.0475 (88.6% Fib). Break below to see further weakness.
- Upside remains capped below converged 78.6% Fib and strong trendline at 1.0567.
- We see a bearish invalidation only on break above 20-DMA at 1.0657.
Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-NZD-finds-major-trendline-support-at-10615-good-to-go-short-on-break-below-1220510) has hit TP1.
Recommendation: Bias lower, stay short.
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