- Overnight rebound in crude supported commodity currencies such as the Australian dollar on Wednesday.
- AUD/NZD trades a tight Asian range – opened the Asian session +0.2% at 1.0614, after a fresh 1.0568 low in London yesterday.
- 5, 10 & 20 DMAs trend south – bias definitely lower, current bearish setup could see a test of the 1.0497 October trend low.
- The pair is currently trading at 1.0615, immediate resistance is located at 1.0620 (Trendline)and support at 1.0582 (Dec 22 low).
- Stochs remain in oversold territory, so caution advised. RSI on dailies has also bounced-off 30 levels and is currently at 37 and points north.
- A close above 1.0620 would invalidate the bearish bias, rebounds to 1.0680 then likely.
Resistance Levels:R1: 1.0620 (Trendline)R2: 1.0630 (10 DMA)R3: 1.0636 (Dec 22 high) Support Levels: S1: 1.0530 (Nov 3 lows)S2: 1.0520 (Nov 2 lows)S3: 1.0497 (Oct 30 lows)
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