FxWirePro: AUD/NZD eyes 50-DMA at 1.0856, break below to see further weakness

• AUD/NZD bears extend slump for 3rd consecutive week, eye 50-DMA support at 1.0856.
   
• Kiwi ignores sharp drop seen in the NZ credit card spending data regains bid tone after latest poll.
   
• The latest opinion poll released by Newshub Reid, showed that the ruling National Party regained lead over the opposition Labour Party in New Zealand’s nation election poll.
   
• Aussie depressed further after Governor Phillip Lowe suggested that the RBA could be far from considering any monetary policy tightening.
   
• AUD/NZD down 0.46% on the day, hovers just above major 50-DMA support at 1.0856.
   
• Techs are biased lower, break below 50-DMA will see further drag, scope then for test of 100-DMA at 1.07.
   
• On the flipside, we see major resistance at 1.1155 (major trendline), only decisive break above 1.1155 (trendline) 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) has hit TP1.

Recommendation: Book partial profits at lows, watch out for break below 50-DMA for further downside.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -31.2479 (Neutral), while Hourly NZD Spot Index was at 120.364 (Bullish) at 0840 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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