FxWirePro: AUD/NZD extends weakness after bearish gap open, close below 5-DMA could see further downside

• AUD/NZD failed to close above 20-DMA in last week's trade and intraday bias has turned slightly bearish.
   
• Upside in the pair has been rejected at 23.6% Fib of 1.1019 to 1.0391 fall at 1.0539 on Friday.
   
• The pair opened trade with a bearish gap and is extending downside, has broken 5-DMA at 1.0473.
   
• We see strong support at 1.040 (trendline), weakness likely on break below.
   
• On the flipside, break above 23.6% Fib could see test of 200-DMA at 1.0604.

Support levels - 1.0412 (June 14 low), 1.040 (trendline), 1.03914 (June 2 low), 1.03542 (Dec 29th, 30th 2106 low).

Resistance levels - 1.0539 (23.6% Fib), 1.0571 (Double top Jan 11 and May 29th), 1.0604 (200-DMA).

Recommendation: Watch out for close below 5-DMA to go short, SL: 1.05, TP: 1.04/ 1.0355.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 53.6936 (Neutral), while Hourly NZD Spot Index was at 5.91996 (Neutral) at 0620 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.