FxWirePro: AUD/NZD upside capped at 5W SMA (1.0980), decisive close below 50-DMA could see further weakness

• AUD/NZD recovery was seen capped at weekly 5-SMA at 1.0980, intraday bias bearish.
   
• The pair is hovering around 50-DMA at 1.0873, decisive break below to see weakness.
   
• Scope then for test of weekly 200 SMA at 1.0744. Further weakness only on break below.
   
• 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.

Support levels - 1.0848 (38.2% Fib retrace of 1.0370 to 1.1143 rise), 1.0744 (Weekly 200-SMA), 1.07

Resistance levels - 1.0896 (5-DMA), 1.0940 (trendline), 1.0993 (20-DMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-NZD-recovery-capped-below-5-DMA-at-110-bias-bearish-906263) has hit TP1/2.

Recommendation: Watch out for decisive break below 50-DMA for further weakness. Target 1.08/ 1.0745.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -68.7142 (Neutral), while Hourly NZD Spot Index was at -42.3115 (Neutral) at 0900 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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