FxWirePro: AUD/NZD extends sideways along 55-EMA support, break below to see weakness

• AUD/NZD extends sideways grind, finds strong support at 55-EMA at 1.0684.
   
• AUD/NZD finds stiff resistance at daily cloud base and has also been capped at 61.8% Fib at 1.0721.
   
• Price action remains rangebound with multiple doji formations on daily charts.
   
• Dovish RBA continues to weigh on the Aussie. But Fitch rating affirmation providing support.
   
• Fitch affirms Australia at 'AAA'; Outlook Stable. Said it does not see a severe housing market slowdown.
   
• Further, Fitch forecasts a modest acceleration in GDP growth from 2.3% in 2017 to 2.7% in both 2018 and 2019, above the 'AAA' median.
   
• Also, technical studies are biased higher. RSI above 50 and momentum studies are bullish. We see +ve DMI dominance and MACD supports upside.
   
• Break above daily cloud finds next major resistance at 200W SMA at 1.0758. Break above required for further gains.
   
• On the flipside, we see weakness on break below 55-EMA, scope then for test of 21-EMA at 1.0649.

Support levels - 1.0696 (5-DMA), 1.0684 (55-EMA), 1.0615 (20-DMA)

Resistance levels - 1.0758 (200W SMA), 1.0781 (100-DMA), 1.0794 (38.2% Fib)

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