- AUD/NZD edges higher from fresh 6-week lows at 1.0965, bias bearish.
- The pair has shown breach at strong trendline support at 1.1045 and has broken below 23.6% Fib at 1.1041.
- Bears now target weekly 20-SMA at 1.0948 ahead of 100-DMA at 1.0938.
- We evidence bearish divergence from price action on RSI and Stochs which adds to the bearish bias.
- Tehcnical indicators on weekly charts are also bearish, Stochs and RSI are sharply lower and we see fading momentum on MACD.
- FxWirePro's Hourly AUD spot Index was at -75.8158 (Bearish) while NZD spot Index was at 177.339 (Bullish) at 0430 GMT.
- FxWirePro's Hourly Currency Strength Index for AUD/NZD also shows bearish bias.
Support levels - 1.0948 (weekly 20-SMA), 1.0938 (100-DMA), 1.0887 (38.2% Fib retrace of 1.0237 to 1.1290 rally)
Resistance levels - 1.1032 (5-DMA), 1.1041 (23.6% Fib), 1.1065 (20-DMA)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-NZD-struggles-at-major-trendline-support-at-11075-good-to-go-short-on-break-below-1022023) has hit all targets.
Recommendation: Book partial profits at lows, trail stop loss to 1.1070, watch out for break below 1.0948 for further weakness, target 1.0938/ 1.0890.
For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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