- AUD/NZD holds channel base support at 1.0590, we see weakness on break below.
- Recovery was rejected at session highs at 1.0627, pair is trading down 0.06% on the day.
- We evidence a 'Death Cross' (bearish 50-DMA crossover on 200-DMA) which adds to bearish bias.
- Technical indicators are biased lower. RSI is weak below 50 levels and Stochs are biased lower.
- Next major support on the downside lies at 1.0567 (78.6% Fib) ahead of 1.0475 (88.6% Fib).
- On the flipside, retrace above 5-DMA could see upside till 20-DMA at 1.0707. Breakout at 20-DMA invalidates bearish bias.
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)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-NZD-finds-major-trendline-support-at-10615-good-to-go-short-on-break-below-1220510) is progressing well.
Recommendation: Watch out for break below channel base for further weakness.
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