FxWirePro: AUD/NZD capped below 20-DMA, on track to test channel base at 1.0630, stay short

• AUD/NZD capped below 20-DMA which is stiff resistance, we see bearish invalidation only on decisive close above.
   
• The pair is extending downside after failure to hold break above 20-DMA, bias lower.
   
• Price action rejected below 200-DMA with hammer formation. Technicals support further downside.
   
• The pair finds strong trendline support at 1.0665, break below will accentuate weakness.
   
• Scope then for test of 1.0590 (July 31 low) ahead of 78.6% Fib retrace at 1.0567.
   
• 20-DMA at 1.0738 is major resistance. Decisive break above could see test of 200-DMA at 1.0850. Violation at 200-DMA invalidates bearish bias.

Support levels - 1.0665 (trendline), 1.0654 (Feb 22 low), 1.0630 (channel base), 1.06

Resistance levels - 1.0738 (20-DMA), 1.08, 1.0850 (200-DMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-NZD-fails-to-hold-break-above-20-DMA-good-to-go-short-below-10732-1176859) has hit TP1.

Recommendation: Bias lower, stay short.

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