AUD/NZD has failed to break out of daily Ichimoku cloud which was stiff resistance at 1.1072. The pair has edged lower to break below 100-DMA and is currently trading at 1.0956 levels. Aussie dented after lower than expected Australia CPI data released earlier today. Australia Q4 RBA trimmed mean CPI Q/Q was flat at 0.4 % (forecast 0.5 %) vs previous 0.4 %. Australia Q4 CPI Q/Q also remained unchanged at 0.6 % (forecast 0.7 %) vs previous 0.6 %. Downside finds strong support at 20-DMA at 1.0950. Break below will accentuate weakness. We then see scope for test of trendline support at 1.0875. Breach there could see 61.8% Fibo at 1.0721. Technical studies have turned bearish. RSI has turned south and we see a -ve DMI crossover. Stochs are also on verge of a bearish rollover from overbought levels.
Watch out for decisive break below 20-DMA to go short, place stops at 100-DMA at 1.1002, targets 1.0875/ 1.08/ 1.0721