FxWirePro: AUD/NZD on track to test 200-DMA at 1.0593, good to short rallies

• AUD/NZD has breached major support levels and is trading with a major bearish bias.
   
• The pair has breached trendline support at 1.07, cloud base at 1.0672, 100-DMA at 1.0674.
   
• The pair is currently holding minor support at 1.0643 (April 20 low), break below will see further downside.
   
• We see scope for test of 200-DMA at 1.0593. Violation there will see further drag.
   
• Aussie dumped on unexpected Australia retail sales miss. Data released earlier today showed retail sales fell 0.1% m/m in March (0.3% expected).
   
• Traders ignore Monday's NAB business conditions and confidence indices which printed at multi-year highs.
   
• Housing market concerns and the weakness in the commodity prices likely to keep downside pressure on the Aussie.
   
• RBNZ policy meet on Wednesday in focus for further impetus.

Support levels - 1.0643 (April 20 low), 1.0593 (200-DMA), 1.0590 (61.8% Fib)

Resistance levels - 1.07, 1.0726 (5-DMA), 1.0754 (38.2% Fib)

TIME  TREND INDEX  OB/OS INDEX   

1H          Bearish               Neutral      

4H          Bearish               Oversold      

1D          Bearish               Neutral       

1W         Bearish               Neutral     

Recommendation: Good to go short on rallies around 1.0660/70, SL: 1.0730, TP: 1.06/ 1.0590/ 1.05

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -137.641 (Bearish), while Hourly NZD Spot Index was at 72.3374 (Slightly bullish) at 0450 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.