The pair tests 20-DMA at 0.7297, bias lower, stay short.
Sentiment around the higher-yielding currency remains sour amid tumbling global equities as well as commodities’ prices.
Chinese data along with NZ GDP scheduled for release later this week to have a major influence on the pair.
Major support levels - 0.7298 (20-DMA), 0.7294 (23.6% Fib), 0.7208 (50-DMA), 0.720 ( )
Major resistance levels - 0.7345 (session high), 0.7380 (5-DMA), 0.74, 0.7413 (Sept 9 high)
Our previous call (link below) has hit all targets. Close below 20-DMA to see test of 0.72 levels.
We recommend booking partial profits, lower trailing stop to 0.7350, target 0.7240/0.72.
On the flipside, failure to close below 20-DMA could see a bounce. invalidation above 0.7375.