- AUD/NZD was rejected at 50-DMA on May 19th trade and the pair is extending downside.
- We have seen a decisive break below 100-DMA on Monday's trade, bias remains lower.
- The pair finds strong trendline support at 1.0650, break below will accentuate weakness.
- Next major support below 1.0650 lies at 200-DMA at 1.0598.
- Technical indicators on the weekly charts are also bearishly aligned.
- RSI and Stochs are biased lower, while MACD is showing a bearish crossover on signal line.
Support levels - 1.0650 (trendline), 1.0628 (61.8% Fib of 1.0237 to 1.1019 rise), 1.0598 (200-DMA)
Resistance levels - 1.0714 (5-DMA), 1.0720 (38.2% Fib), 1.0764 (20-DMA)
Recommendation: Good to go short on break below 1.0650, SL: 1.0715, TP: 1.06/ 1.0535
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 54.2198 (Neutral), while Hourly NZD Spot Index was at 75.0227 (Bullish) at 0840 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
