- AUD/NZD is consolidating break below major trendline support at 1.040.
- Recovery attempts in the pair were rejected at trendline support turned resistance now at 1.0415.
- Technical indicators are heavily bearish, RSI below 50 levels and biased lower.
- We see scope for reversal in trend only on break above 20-DMA at 1.0452.
- On the downside, we see scope for test of 88.6% Fib retrace of 1.0237 to 1.1018 rally at 1.0326.
Support levels - 1.03914 (June 2 low), 1.03542 (Dec 29th, 30th 2106 low), 1.0326 (88.6% Fib retrace of 1.0237 to 1.1018 rally)
Resistance levels - 1.0406 (5-DMA), 1.0415 (trendline), 1.0452 (20-DMA)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-NZD-extends-weakness-after-bearish-gap-open-close-below-5-DMA-could-see-further-downside-761613) is on track to hit TP2.
Recommendation: Stay short.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 22.5028 (Neutral), while Hourly NZD Spot Index was at 62.0565 (Neutral) at 0900 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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