FxWirePro: AUD/NZD pivotal at "Double Bottom", break below to plummet prices

AUD/NZD chart - Trading View 

Technical Analysis: Bias Bearish

- Price action has broken below 110-EMA support and is hovering around 'Double Bottom' at 1.0717

- MACD shows bearish crossover on signal line. CCI, ADX and DMI support weakness in the pair. 

- Price action has slipped below the daily cloud and Chikou span is sharply lower suggesting further weakness

- Stochs and are RSI show strong bearish momentum and volatility is rising as evidenced by widening Bollinger bands

- Analysis of GMMA shows minor trend is strongly bearish and major trend is turning bearish

Support levels - 1.0717 (Double Bottom), 1.0641 (38.2% Fib), 1.0583 (Trendline)

Resistance levels - 1.0760 (110-EMA), 1.0787 (5-DMA), 1.0795 (23.6% Fib)

Data Watch: 

- China September CPI +1.7 pct y/y (expected +1.8%), China September CPI +0.2 pct m/m (expected +0.3 pct).

- China September PPI -2.1 pct y/y (expected -1.8 pct), China September PPI +0.1 pct m/m.

- Aussie September Unemployment Rate +6.9 % vs +7.1% expected, 6.8 prior. Full Time Employment -20.1k s/adj. Participation Rate +64.8 pct 

Summary: Reserve Bank of Australis governor, Philip Lowe's comments fanning rate cut expectations and poor data do not bode well for the Australian dollar. Technical studies for the pair support weakness. Break below 1.0717 (Double Bottom) will plummet prices. Dip till 1.0585 levels likely.