- AUD/NZD extends weakness for a second straight session, trades 0.43% lower on the day.
- Disappointing Chinese trade surplus data weighs for the second straight session on the Aussie.
- Weak China's trade surplus in May, primarily led by a sharp jump in imports, further weighed on the Australian Dollar.
- Technical indicators are turning bearish. Stochs are biased lower and RSI has slipped below 50 levels.
- The pair finds major support at 1.0787 (nearly converged 55 and 110-EMA), break below will see further weakness.
- On the flipside, 5-DMA is immediate resistance. Close above will see resumption of upside.
Support levels - 1.0787 (nearly converged 55 and 110-EMA), 1.0724 (50% Fib), 1.07
Resistance levels - 1.08, 1.0838 (21-EMA), 1.0852 (5-DMA)
Recommendation: Good to go short on break below 1.0785, SL: 1.0840, TP: 1.0725/ 1.07/ 1.0670
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