- AUD/NZD bounce off strong trendline support finds stiff resistance at 20-DMA.
- The pair has been rejected at 20-DMA resistance and we see any further upside only on break above.
- Price action currently hovers around 1.07 handle, technical indicators are turning bearish.
- Stochs and RSI have turned south and 5-DMA is also biased lower.
- Downside finds strong trendline support at 1.0670. Breach at trendline support required for further weakness.
- On the flipside, breakout at 20-DMA raises scope for test of 200-DMA at 1.0853. Breach at 200-DMA could accentuate gains.
Support levels - 1.0670 (trendline), 1.0654 (Feb 22 low), 1.0630 (channel base), 1.06
Resistance levels - 1.0728 (5-DMA), 1.0733 (20-DMA), 1.08, 1.0853 (200-DMA)
Recommendation: Good to go short on rallies around 1.0710/20, SL: 1.0760, TP: 1.0670/ 1.0630/ 1.06.
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