General overview: The AUD/NZD continues to decline after hitting two weeks ago at 1.06161, the highest level since mid-October. After breaking under 1.0800, it accelerated the decline. The retreat continued until it found support on Friday at 1.0630/50, where the 50-day simple moving average stands. The pair creates the sell signals in the chart. The pair testing the major support level in the market. The market travels downside side in the market. The bears are forcing the market towards the negative side in the market. The pair makes a clear path towards the sell signals in the market. The pair creating the selling path in the market. The market travels towards sell position in the market. The pair creating the bearish candlestick in the pair 1.06272 and the pair creates the lower side in the market. The pair makes the bearish marabuzo stick on a daily chart pattern. The sell side can be formed on the negative side in the market. Bias continues to point to the downside in AUD/NZD.Price testing the dynamic support at the 55-SMA. Key event ahead: Reserve Bank of Australia meeting on Tuesday.
Technical analysis: We can say market sets towards the sell-side in the market bears the forcing the market towards the lower side in the market. Bears are creating strong bearish signals in the market as the market formed low volatility towards the market. The low momentum in the market forces traders to sit towards the sell-side in the market. On the 4 hourly charts market creates a bearish pathway in market. As, the minor EMA lines are falling faster than SMA lines in the market and creates the sell signals. The indicator also creates the same situation as like price pattern RSI also travels below 50 levels as it creates the sell signals in the market, as well as MACD, will also move below the zero lines creates the sell signals. The support of the market is 1.0657 followed by 1.0527 and resistance is 1.0677 followed by 1.0727.
Trade idea: Traders are advised to go for sell signals at level 1.0630 for the target of 1.0520- 1.0440 and stop loss will be 1.0780.
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