- AUD/NZD recovery from 6-week lows at 1.0961 capped at 50-DMA at 1.1034, bias bearish.
- The pair has broken strong trendline support at 1.1045 and slipped below 23.6% Fib at 1.1041.
- Immediate support now lies at 20W SMA at 1.0950, break below to see further weakness.
- Technical studies support downside, bearish divergence from price action on RSI and Stochs adds to the bearish bias.
- Next bear target below weekly 20-SMA lies at 1.0888 (38.2% Fib retrace of 1.0237 to 1.1290 rally).
- On the flipside, retrace above 50-DMA could see test of 20-DMA at 1.1060.
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)
Recommendation: Good to go short on rallies around 1.1010, SL: 1.1060, TP: 1.0960/ 1.0940/ 1.0890
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -147.513 (Bearish), while Hourly NZD Spot Index was at 17.8616 (Neutral) at 0400 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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