FxWirePro: AUD/NZD extends decline for 3rd consecutive week, bias lower, stay short

• AUD/NZD is extending decline for 3rd consecutive week after failing to break major trendline resistance at 1.1155.
   
• The pair is extending grind lower after breach of major support at 20-DMA in last week's trade.
   
• A slight improvement seen in the latest GDT auction where the NZ GlobalDairyTrade price index arrived at +0.9% vs +0.3% prior.
   
• Further, New Zealand’s current account deficit narrowed to 2.8% of GDP in the year to June, following a revised deficit of 2.9% last quarter.
   
• Positive data lent support to the kiwi, AUD/NZD slips to fresh multi-week lows at 1.0889.
   
• The pair has retraced some of the losses and is currently hovering around 1.0932 levels.
   
• Techs on weekly charts are biased lower. RSI has turned lower from near overbought levels and Stochs are on the verge of rollover from overbought levels.
   
• Stiff resistance lies at 1.1155 (major trendline), only decisive break above could see further upside.

Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-NZD-recovery-capped-below-5-DMA-at-110-bias-bearish-906263) is progressing well.

Recommendation: Stay short for targets.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 152.993 (Bullish), while Hourly NZD Spot Index was at 145.707 (Bullish) at 1015 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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