- AUD/NZD is consolidating break below major trendline support at 1.0875, bias lower.
- Recovery attempts lack traction, pair rejected at session highs at 1.0875 (trendline).
- Downside finds major support at 200-DMA at 1.0846, break below to see further weakness.
- Technical studies are bearish. RSI and Stochs are biased lower. MACD has shown a bearish crossover on signal line.
- We also see -ve DMI dominance and ADX is rising to support trend.
- Next bear target below 200-DMA lies at 50% Fibo at 1.0830 ahead of 61.8% Fib at 1.0721.
- Upside finds stiff resistance at 1.0933 (nearly converged 20-DMA and 38.2% Fib). Upside only on break above.
- Focus now on Reserve Bank of New Zealand’s (RBNZ) monetary policy meeting scheduled on February 7.
Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-NZD-finds-strong-support-at-10950-20-DMA-good-to-go-short-on-break-below-1124222) has hit TP1.
Recommendation: Bias lower, hold for further downside.
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