Source: PaxForex Premium Analytics Portal, Technical Insight

Fitch International Ratings has affirmed Australia's long-term foreign currency Issuer Default Rating (IDR) at 'AAA', changing its outlook to 'negative' from 'stable'. The agency said the 'negative' outlook reflects the serious impact that the COVID-19 coronavirus pandemic is having on Australia's economy and government finances. "The country's GDP will decline sharply in 2020, and rising government spending in response to the epidemiological and economic crisis will lead to a significant budget deficit and a sharp increase in government debt to GDP," Fitch said.

AUD/NZD, 30 min

Pivot: 1.0670

Analysis:

Provided that the currency pair is traded below 1.0690, follow the recommendations below:

• Time frame: 30 min
• Recommendation: short position
• Entry point: 1.0670
• Take Profit 1: 1.0660
• Take Profit 2: 1.0640

Alternative scenario: 

In case of breakout of the level 1.0690, follow the recommendations below:

• Time frame: 30 min
• Recommendation: long position
• Entry point: 1.0690
• Take Profit 1: 1.0740
• Take Profit 2: 1.0760

Comment:

RSI shows a bearish trend during the day.

Key levels:

AUD/NZD, D1

Pivot: 1.0643

Analysis:

While the price is below 1.0860, follow the recommendations below:

• Time frame: D1
• Recommendation: short position
• Entry point: 1.0643
• Take Profit 1: 1.0420
• Take Profit 2: 1.0310

Alternative scenario:

If the level 1.0860 is broken-out, follow the recommendations below.

• Time frame: D1
• Recommendation: long position
• Entry point: 1.0860
• Take Profit 1: 1.1050
• Take Profit 2: 1.1150

Comment:

RSI is below 50. MACD is positive and below the signal line. The MACD must break through the zero line to expect further declines. Moreover, the pair is traded at 20 mA (1.0746) but above 50 mA (1.0618). Finally, the AUD/NZD has penetrated into its lower Bollinger band (1.0656).

Key levels:

We also advise you to pay attention to the following currency pairs for intra-day trading:

AUD/USD – sell below 0.6985 with 0.6900 and 0.6870 as Take Profit targets. Alternative scenario - if the level of 0.6985 is broken-out, you should consider buying with the targets 0.7010 and 0.7035 as Take Profit.
GBP/USD - short positions below 1.2750 with 1.2640 and 1.2615 targets as Take Profit. Alternative scenario - if the level of 1.2750 is broken-out, buy with the targets 1.2785 and 1.2810 as Take Profit.
USD/CAD – buy above 1.3400 with 1.3485 and 1.3525 targets as Take Profit. Alternative scenario - if the level 1.3400 is broken-down, sell with the TP 1.3365 and 1.3330.