FxWirePro: AUD/NZD extends downside after break below 5-DMA, good to sell rallies

• AUD/NZD extends downside after rejection at major trendline resistance on Wednesday's trade.
   
• The pair has closed below 5-DMA and recovery attempts on the day rejected below 5-DMA.
   
• Aussie dented after Lowe's comments and downbeat CAPEX data on Thursday. 
   
• RBA Governor Lowe’s said earlier today that he would like AUD level lower, although discarded further rate cuts.
   
• Shooting star formation evidenced on dailies. RSI shows retracement from near overbought levels.
   
• Momentum is fading and Stochs are on verge of bearish rollover from overbought levels.
   
• We see scope for test of 20-DMA at 1.0567. Bearish invalidation only above 1.0740 levels.

Support levels - 1.0655 (38.2% Fib retrace of 1.1333 to 1.0237 fall), 1.06, 1.0580 (20-DMA)

Resistance levels - 1.0688 (5-DMA), 1.07, 1.0765 (trendline), 1.0785 (50% Fib)

TIME  TREND INDEX  OB/OS INDEX    

1H          Bearish                 Neutral       
4H          Bearish                 Neutral       
1D          Bearish                 Neutral    
1W         Bullish                  Neutral    

Recommendation: Good to go short on rallies around 1.0670, SL: 1.0725, TP: 1.06/ 1.0580

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -23.8834(Neutral), while Hourly NZD Spot Index was at 116.964 (Highly bullish) at 0900 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.