- AUD/NZD is extending weakness below major EMAs, intraday bias bearish.
- The pair is trading 0.14% lower on the day, momentum studies are highly bearish.
- Upside remains capped below 5-DMA which is immediate resistance at 1.0558.
- Technical indicators are biased lower, we see scope for further downside.
- Next bear target lies at 1.0485 (major trendline). Violation there could see further weakness.
- Focus this week will be RBA Lowe's speech on Wednesday after last week's dovish showing from the RBA.
- On the data front we have Australia’s business confidence, consumer sentiment and home loan approvals which could impact price action.
Support levels - 1.0485 (major trendline), 1.0475 (88.6% Fib), 1.0396 (July 7 low)
Resistance levels - 1.0558 (5-DMA), 1.0567 (78.6% Fib), 1.0627 (21-EMA)
Recommendation: Good to short rallies around 1.0540/50, SL: 1.0630, TP: 1.05/ 1.0485/ 1.04
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