- AUD/NZD has bounced off strong trendline support at 1.0485, we see further weakness only on break below.
- The pair is trading in a narrow range, hovers around 78.6% Fib at 1.0567.
- Technical indicators are turning bullish, we see scope for further upside.
- RSI and Stochs have rolled over from oversold levels and MACD is on verge of bullish crossover on signal line.
- 20-DMA at 1.0593 is immediate resistance, breakout above could see further upside.
- Focus now on Tuesday's release of the minutes of the Reserve Bank of Australia meetings.
- Last week, RBA Governor Phillip Lowe said rates are “unlikely to move anytime soon”.
Support levels - 1.0542 (5-DMA), 1.0485 (major trendline), 1.0475 (88.6% Fib), 1.0412 (June 14 low)
Resistance levels - 1.0593 (20-DMA), 1.06, 1.6080 (50-DMA)
Recommendation: Good to go long on break above 20-DMA at 1.0593, SL: 1.0540, TP: 1.0680/ 1.07/ 1.0720
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 34.5402 (Neutral), while Hourly NZD Spot Index was at -28.6798 (Neutral) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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