FxWirePro: AUD/NZD extends weakness below 50% Fib, hits 7-month low, outlook bearish

AUD/NZD chart - Trading View 

- AUD/NZD was extending weakness for the 7th straight session, hits new 7-month low

- Price action has shown a decisive break below 200-DMA which has opened downside for the pair

- Momentum is strongly bearish and volatility rising as evidenced by widening Bollinger bands

- Weekly cloud is now major support at 1.0428 to 1.0456. Break below weekly cloud will plummet prices 

- Price action has tested 50% Fib and is on track to test 61.8% Fib retracement at 1.0392

- Oversold oscillators might cause some pullbacks. Bearish invalidation only above 200-DMA

Support levels - 1.0428 (Weekly cloud), 1.0392 (61.8% Fib), 1.0307 (Jan lows)

Resistance levels - 1.0517 (50% Fib), 1.0604 (21-EMA), 1.0648 (200-DMA)

Summary: AUD/NZD trades with a strong bearish bias. Minor pullbacks likely on account of oversold oscillators, but major trend remains bearish. Weekly cloud is strong support, break below will plummet prices. The pair is on track to test 61.8% Fib retracement at 1.0392.