AUD/NZD short setup
Aussie dented post release of RBA minutes.
RBA minutes released this Tuesday morning took note of the rising household debt and weakness in consumption and labor market.
Minutes reiterated the dangers of a strong Aussie dollar and talked about a slow pick in the core inflation.
AUD/NZD has broken below major support by 50-DMA at 1.0797 to hit 7-week lows at 1.0724.
Downside has broken strong support at 1.0740 (trendline), likely to see further drag.
Close above 50-DMA will invalidate our bearish call.
Support levels - 1.0740 (trendline), 1.0726 (cloud top), 1.0698 (March 2 low)
Resistance levels - 1.0797 (50-DMA), 1.08, 1.0855 (23.6% Fib retrace of 1.0326 to 1.1018 rally)
Good to go short on rallies around 1.0735/40, SL: 1.08, TP: 1.07/ 1.0675/ 1.0615
RBA minutes released this Tuesday morning took note of the rising household debt and weakness in consumption and labor market.
Minutes reiterated the dangers of a strong Aussie dollar and talked about a slow pick in the core inflation.
AUD/NZD has broken below major support by 50-DMA at 1.0797 to hit 7-week lows at 1.0724.
Downside has broken strong support at 1.0740 (trendline), likely to see further drag.
Close above 50-DMA will invalidate our bearish call.
Support levels - 1.0740 (trendline), 1.0726 (cloud top), 1.0698 (March 2 low)
Resistance levels - 1.0797 (50-DMA), 1.08, 1.0855 (23.6% Fib retrace of 1.0326 to 1.1018 rally)
Good to go short on rallies around 1.0735/40, SL: 1.08, TP: 1.07/ 1.0675/ 1.0615
Bias lower. Stay short.