FxWirePro: AUD/NZD bounces off 200-DMA support, weakness only on break below

• AUD/NZD opened the week's trade with a bullish gap and is extending gains, trading 0.41% higher on the day.
   
• Price action has bounced off 200-DMA support and we see weakness only on decisive break below.
   
• Aussie gets a boost in early Monday's trade, remains bolstered by rising copper prices.
   
• Favorable terms-of-trade have helped so far, but risks around the housing market may also weigh.
   
• Technical indicators for the pair support upside for now. Momentum bullish, RSI and Stochs biased higher.
   
• Price has broken above 5-DMA and we see scope for test of 1.0985 (trendline resistance).
   
• Decisive break below 200-DMA could see weakness in the pair. Dip till 38.2% Fib at 1.0794 likely.

Support levels - 1.09 (5-DMA), 1.0862 (200-DMA), 1.0794 (38.2% Fib)

Resistance levels - 1.0985 (converged trendline and 61.8% Fib), 1.10, 1.1050 (Jan 4 high)

Recommendation: Good to go long around 1.09, SL: 1.0860, TP: 1.0985/ 1.10/ 1.1050

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 104.233 (Bullish), while Hourly NZD Spot Index was at 91.6937 (Bullish) at 0745 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.