The Aussie dollar remains in steep descend against its New Zealand counterpart and approaches round-figure 1.0400 support on fresh bearish extension on Friday.
The pair is riding on extended wave C of five-wave cycle from 1.1019 (16 Mar peak) which met its 138.2% Fibonacci expansion and could travel to key support at 1.0324 (217 low, also FE 161.8%).
Series of long red daily candles weigh and maintain strong bearish pressure, along with recently formed 10/200SMA Death Cross.
The pair is also on track for third consecutive strong weekly close in red that reinforces strong bearish stance.
Previous week’s long bearish candle marks the biggest one-week loss since the last week of Apr 2016 and also produces strong bearish pressure, along with thick weekly cloud (cloud base lies at 1.0533).
Deeply oversold daily studies suggest correction, however, no firmer signal being generated so far that keeps the pair in strong downtrend.
Corrective actions should be ideally capped under weekly cloud base, reinforced by falling 10SMA.
Res: 1.0453, 1.0500, 1.0533, 1.0598
Sup: 1.0400, 1.0374, 1.0324, 1.0236
