FxWirePro: AUD/NZD breaks below 50-DMA, more downswings likely, good to short rallies

• Aussie dumped in early Asia, was the worst performer amid AUD/NZD driven weakness and falling copper prices.
• On the other side, strong New Zealand jobs data and dairy prices which rose to their highest level this year in the global dairy auction overnight buoy the Kiwi.
• AUD/NZD saw huge slump, was down 0.76% on the day to hit lows of 1.0781.
• The pair has broken below 50-DMA support at 1.0831 and we see scope for more downswings.
• RSI is biased lower and Stochs are showing a bearish rollover from overbought levels.
• Price action has dipped into daily cloud and we see a potential ‘Bullish Bat’ pattern on daily charts.

Support levels: 1.0761 (April 7 low), 1.0712 (April 24 low), 1.0665 (100-DMA)

Resistance levels: 1.0831 (50-DMA), 1.0861 (5-DMA), 1.09, 1.0935 (May 1 high)

TIME  TREND INDEX  OB/OS INDEX    

1H          Neutral                 Overbought        

4H          Bullish                 Overbought        

1D          Bearish                Neutral    

1W         Bullish                 Neutral    

Recommendation: Good to go short on rallies around 1.08/1.0810, SL: 1.0860, TP: 1.0760/ 1.0710/ 1.0670