FxWirePro: AUD/NZD consolidates break below 78.6% Fib, further weakness on charts, stay short

• AUD/NZD is consolidating break below 78.6% Fib retracement of 1.03706 to 1.12899 rally at 1.05673.
   
• Price has edged higher from fresh 8-month lows at 1.0526, bias still bearish.
   
• Technical indicators are biased lower. RSI is weak below 50 levels and Stochs are biased lower.
   
• A 'Death Cross' formation (bearish 50-DMA crossover on 200-DMA) on daily charts keeps scope for downside.
   
• Price action now finds next major support at 1.0475 (88.6% Fib). Break below to see further weakness.
   
• Upside remains capped below converged 78.6% Fib and strong trendline at 1.0567.
   
• We see a bearish invalidation only on break above 20-DMA at 1.0657.

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-NZD-finds-major-trendline-support-at-10615-good-to-go-short-on-break-below-1220510) has hit TP1.

Recommendation: Bias lower, stay short.

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