FxWirePro: AUD/NZD on verge of cloud breakout, outlook bullish
Chart - Courtesy Trading View
AUD/NZD was trading 0.29% higher on the day at 1.0488 at around 10:25 GMT
Previous Week's High/ Low: 1.0456/ 1.0316
Previous Session's High/ Low: 1.0484/ 1.0374
Broad-base NZD weakness likely fueling upside in the pair.
The kiwi was hammered lower on Wednesday after the Reserve Bank of New Zealand (RBNZ) disappointed markets with smaller-than-expected interest rate hike.
RBNZ hiked its interest rate to 0.75% and raised its long-term cash rate projection by 50 bps. Investors had expected a bigger hike and long-term cash rate projection from the central bank.
- AUD/NZD price action has bounced off major trendline support
- 5-DMA has turned, price action is now above 200H MA
- Momentum is strongly bullish, Stochs and RSI are sharply higher
- Price action has edged above the daily cloud and 110-EMA
Major Support and Resistance Levels:
Support - 1.0481 (cloud top), Resistance - 1.0495 (Upper BB)
Summary: AUD/NZD technical bias has turned bullish on the daily charts. Decisive break above daily cloud will propel the pair higher.