FxWirePro: AUD/NZD retraces break below trendline support at 1.0395, bias lower, good to short rallies

• AUD/NZD has edged higher from session lows at 1.0379 and is currently trading at 1.0414 levels.
   
• The pair is trading with a major bearish bias and we see scope for reversal only on break above 20-DMA at 1.0474.
   
• Technical indicators are biased lower, RSI and Stochs point south and RSI is well below 50 levels.
   
• Decisive break below trendline could see drag upto 1.0335 (trendline).
   

Support levels - 1.0395 (trendline), 1.03914 (June 2 low), 1.03542 (Dec 29th, 30th 2106 low).

Resistance levels - 1.0470 (5-DMA), 1.05, 1.0535 (61.8% Fib of 1.0237 to 1.1019 rally)

TIME  TREND INDEX  OB/OS INDEX   

1H          Neutral               Neutral      

4H          Bearish               Neutral      

1D          Bearish               Neutral       

1W         Bearish               Neutral     

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) has hit TP1 and is on track to hit TP2.

Recommendation: Book partial profits at lows, lower trailing stop to 1.0470, stay short for 1.0355/ 1.0340/ 1.0325.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -40.5044 (Neutral), while Hourly NZD Spot Index was at 80.3571 (Bullish) at 0500 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.