- AUD/NZD trades 0.06% lower on the day, extending downside after rejection at 20-DMA.
- China-US heat-up in tariff threats keeps risk sentiment dented weighing on the antipodeans.
- Technical indicators are biased lower. RSI is weak below 50 levels and Stochs are biased lower.
- The pair finds strong trendline support at 1.0615, we see weakness accentuate on break below.
- Next major support below 1.0615 lies at 1.0567 (78.6% Fib) ahead of 1.0475 (88.6% Fib).
- Focus now on Australia HIA New Home Sales figures for March and a speech from the Reserve Bank of Australia's (RBA) Assistant Governor Kent due later this week for further impetus.
Support levels - 1.0615 (trendline), 1.0567 (78.6% Fib), 1.0475 (88.6% Fib)
Resistance levels - 1.0675 (5-DMA), 1.07, 1.0721 (61.8% Fib)
Recommendation: Good to go short on break below 1.0615, SL: 1.0675, TP: 1.0570/ 1.05/ 1.0475
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