AUD/NZD trades in a neutral setup - 21 DMA at 1.0936 is pivotal support, close below could expose 1.0860 (32.8 % Fibo 1.0496-1.1086 rise).
- Upbeat Australia retail sales which increased 0.5% m/m in Oct, marginally higher than previous month had little impact.
- Longer upper wicks seen on daily candles raise concerns for upside. The pair is back below the 10 & 100-DMAs and the cloud top is falling.
- Daily Stochs and RSI are also biased lower, bearish 5 & 10 DMA cross - suggests consolidation, 1.0936 (21 DMA) and 1.0973 (cloud top) are initial support/resistance.
Recommendation: Go short AUD/NZD on close below 1.0936, SL: 1.0980, TP: 1.0860
Resistance Levels:
R1: 1.0973 (cloud top)
R2: 1.1000 (100-Day MA)
R3: 1.1010 (10-Day MA)
Support Levels:
S1: 1.0936 (21-Day MA)
S2: 1.0924 (Session low Dec 1)
S3: 1.0860 (32.8 % Fibo 1.0496-1.1086 rise)
