FxWirePro: AUD/NZD rejected at highs, slips below 5-DMA, intraday bias lower

• AUD/NZD rejected at highs, upside fails below major trendline resistance at 1.0765.
   
• Aussie slips against major peers as Australia’s private capital expenditure data fails to meet expectations.
   
• Australia’s Q4 capital expenditure printed at -2.1 % missing forecast at -0.4 % vs previous -3.3 %.
   
• Australia’s Q4 building capex also decreased to -4.1 % vs previous -3.6 %, while plant/machinery capex increased to 0.4 % vs previous -3 %.
   
• Shooting star formation evidenced on dailies. RSI shows retracement from near overbought levels.
   
• Momentum is fading and Stochs are on verge of bearish rollover from overbought levels.
   
• The pair has slipped below 5-DMA and we see scope for test of 20-DMA at 1.0567.

Support levels - 1.0660 (session low), 1.0655 (38.2% Fib retrace of 1.1333 to 1.0237 fall), 1.06

Resistance levels - 1.0695 (5-DMA), 1.07, 1.0765 (trendline), 1.0785 (50% Fib)

TIME  TREND INDEX  OB/OS INDEX    

1H          Bullish                  Neutral       
4H          Bearish                Neutral       
1D          Neutral                 Neutral    
1W         Bullish                  Neutral    

Recommendation: We will wait for further confirmation on technicals to go short.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -25.4045(Neutral), while Hourly NZD Spot Index was at 145.676 (Highly bullish) at 0200 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.