FxWirePro: AUD/NZD pauses downside at 23.6% Fib, further weakness on cards

Chart - Courtesy Trading View 

Spot Analysis:

AUD/NZD was trading 0.16% higher on the day at 1.0999 at around 07:15 GMT

Previous Week's High/ Low: 1.1168/ 1.0976

Previous Session's High/ Low: 1.1088/ 1.0976

Fundamental Overview:

Fears of recession, as well as hawkish Fed bets, weigh on the market sentiment, keeping the antipodeans depressed.

The People's Bank of China (PBOC) kept its key monetary policy rates unchanged earlier on Monday. 

The central bank held the 5-year and 1-year Loan Prime Rate (LPRs) unchanged at 4.45% and 3.70% respectively. 

The Chinese central bank’s inaction contrasts with the Western policymakers' hawkish bias but fails to renew the market’s optimism.

Technical Analysis:

- AUD/NZD pauses 2-days downside at 55-EMA and 23.6% Fib support

- Momentum is with the bears, Stochs and RSI are sharply lower

- MACD and ADX support downside in the pair

- Price action is below 200H MA, GMMA indicator shows bearish bias on the intraday charts

Major Support and Resistance Levels:

Support - 1.0977 (55-EMA), 1.0967 (23.6% Fib)

Resistance - 1.1043 (21-EMA), 1.1088 (200H MA)

Summary: AUD/NZD bias tilted to the downside. Break below 23.6% Fib will drag the pair lower. Close above cloud negates further weakness.