FxWirePro: AUD/NZD extends downside along potential 'Bullish Bat' pattern, bias lower

• AUD/NZD extends slump for the 5 straight session, down 0.54% on the day.
   
• Kiwi boosted from the RBNZ's Q2 inflation expectations survey results.
   
• Survey showed the prices of goods and services are now expected to change at an annual rate of 2.17%, up from 1.92% expected in the first quarter.
   
• The pair has broken below 50-DMA support at 1.0831 and we see scope for more downswings.
   
• RSI and Stochs on daily charts are biased lower. MACD is showing a bearish crossover on signal line.
   
• Price action has dipped into daily cloud and we see continuation of downside amid potential ‘Bullish Bat’ pattern.

Support levels: 1.0761 (April 7 low), 1.0712 (April 24 low), 1.0665 (100-DMA)

Resistance levels: 1.0831 (50-DMA), 1.0861 (5-DMA), 1.09, 1.0935 (May 1 high)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-NZD-breaks-below-50-DMA-more-downswings-likely-good-to-short-rallies-677235) is approaching TP2.

Recommendation: Book partial profits at lows. Hold for downside.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -67.1787 (Slightly bearish), while Hourly NZD Spot Index was at 15.9092 (Neutral) at 0940 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.