- AUD/NZD extends previous session's gains, intraday bias higher.
- Sentiment around the antipodeans dented after poor Chinese manufacturing PMI data.
- China's January 207 Caixin manufacturing PMI came at 51.0 vs 51.8 expected and 51.9 last.
- The pair has broken major resistance by 100-DMA at 1.0507 and is currently trading at 1.0515.
- Technical indicators are bullishly aligned, RSI and Stochs are biased higher.
- MACD line is on the verge of a bullish crossover on signal line, which if happens will add to the bullish bias.
- Support levels - 1.05, 1.0473 (20-DMA), 1.0456 (50-DMA), 1.0434 (5-DMA)
- Resistance levels - 1.0535 (Trendline), 1.0555 (Jan 20 high), 1.0572 (Jan 11 high)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-Aussie-spikes-on-mammoth-Dec-trade-surplus-data-good-to-buy-AUD-NZD-dips-519447) has achieved TP1.
Recommendation: Book partial profits. Stay long for further upside.
