- AUD/NZD struggles to break major trendline support at 1.1075, bias neutral.
- Bearish divergence on RSI and Stochs keeps scope for downside. Break below 1.1075 raises scope for weakness.
- Next immediate support lies at 50-DMA at 1.1029, ahead of daily cloud at 1.0963.
- On the flipside, breakout above 20-DMA at 1.1097 raises scope for test of 1.1143 (Sept 7 high) ahead of 1.1290 (Oct 24 high) and then 1.13 (trendline)
Support levels - 1.1072 (23.6% Fib retracement of 1.0370 to 1.1290 rally), 1.1029 (50-DMA), 1.0963 (daily cloud)
Resistance levels - 1.1085 (5-DMA), 1.1097 (20-DMA), 1.1143 (Sept 7 high), 1.12
Recommendation: Good to go short on break below 1.1075, SL: 1.11, TP: 1.1029/ 1.10/ 1.0965.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -105.455 (Bearish), while Hourly NZD Spot Index was at -93.476 (Bearish) at 0600 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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