FxWirePro: AUD/NZD breaks 61.8% Fib, hits fresh 5-month highs at 1.1017

• AUD/NZD continues bull-run, breaks 61.8% Fib to hit fresh 5-month highs at 1.1017.
  
• RBNZ’s Wheeler jawboned the NZD, said a weaker NZD is needed to increase tradable inflation and help deliver more balanced growth.
  
• On the other side, the Aussie remains bid after the data released in Australia showed a big improvement in the construction activity.
  
• The second quarter construction work has jumped 9.3%, beating the forecast of 1.0%.
  
• Meanwhile, the building approvals dropped 1.7% m/m and 13.9% y/y in July. However, the fall was less steep than expected.
  
• Technical indicators are at overbought levels, but do not show signs of reversal.
  
• On monthly charts, the pair has formed a symmetric triangle pattern and price action is just shy of triangle top at 1.1050.
  
• The pair has broken above monthly 50-SMA at 1.0700 and break above triangle top could reinforce upside.

Support levels - 1.0968 (5-DMA), 1.0973 (61.8% Fib of 1.4129 to 1.0237 fall), 1.0912 (23.6% Fib retrace of 1.37951 to 1.00204 fall), 1.0842 (20-DMA)

Resistance levels - 1.1016 (session high), 1.1018 (Mar 16 high), 1.1086 (Nov 2015 high)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-NZD-breaks-major-resistance-at-10890-bias-higher-stay-long-864875) has hit all targets.

Recommendation: Book full profits at highs. Watch out for break above 1.1050 for further upside.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 119.871 (Bullish), while Hourly NZD Spot Index was at 137.576 (Bullish) at 0430 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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