FxWirePro: AUD/NZD spikes past 78.6% Fib, hits 9-month highs at 1.1174

Refer AUD/NZD chart on Trading View

• AUD/NZD spikes past 78.6% Fib to hit 9-month highs at 1.1174, bias still higher.
   
• NZD dented post RBNZ rate decision and dovish forward guidance.
   
• The central bank surprised markets by revising lower the Sept 2019 interest rate forecast to 1.8 percent from the previous 1.9 percent.
   
• Further, RBNZ governor Orr said the central bank expects the interest rates to stay at the current level of 1.75 percent through 2019 and into 2020.
   
• Adding to the bearish pressure around the kiwi was the escalating US-China trade tensions.
   
• Techs support further upside in the pair. We see scope for test of 88.6% Fib at 1.1198 ahead of 1.1290 (Oct 24 2017 high).

Support levels - 1.1118 (78.6% Fib), 1.1025 (5-DMA), 1.0983 (61.8% Fib)

Resistance levels - 1.1198 (88.6% Fib), 1.12, 1.1290 (Oct 24 2017 high)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-NZD-consolidates-break-above-trendline-resistance-break-below-5-DMA-could-see-minor-weakness-1413551) has hit all targets.

Recommendation: Book partial profits at highs, trail SL to 1.1025, target 1.1198/ 1.1290.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -32.9275 (Neutral), while Hourly NZD Spot Index was at 27.0931 (Neutral) at 0845 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.