Back
5 Jun 2013
AUD/NZD breaks 1.2000, sellers discover new downside potential
FXstreet.com (Barcelona) - The AUD/NZD is breaking lower in Asia trade, down 40 pips at 1.1989.
Earlier in the session the pair was trading as high as 1.0230, but took a swift leg down after the Aussie GDP print came in at 2.5% vs. 2.7% forecast. The FXStreet.com Trend Index remains slightly bearish on the 1 hour chart, while the OB/OS index reads oversold.
From a longer term technical perspective, the set up on the daily chart is becoming more bearish with price back below the 20dma (although we will have to see where the pair closes). Furthermore, the RSI (14) was never able to make much headway above the 50 level which is another bearish development. Initial support sits at 1.1960 (the dma), while first resistance is at 1.1996 (the 20dma)
Earlier in the session the pair was trading as high as 1.0230, but took a swift leg down after the Aussie GDP print came in at 2.5% vs. 2.7% forecast. The FXStreet.com Trend Index remains slightly bearish on the 1 hour chart, while the OB/OS index reads oversold.
From a longer term technical perspective, the set up on the daily chart is becoming more bearish with price back below the 20dma (although we will have to see where the pair closes). Furthermore, the RSI (14) was never able to make much headway above the 50 level which is another bearish development. Initial support sits at 1.1960 (the dma), while first resistance is at 1.1996 (the 20dma)