FxWirePro: AUD/NZD breaks major resistance at 1.0830, bias higher, stay long

• AUD/NZD retraces dip towards 20-DMA and spikes higher as Kiwi slumps on RBNZ jawboning.
   
• Looming North Korea risks continue to keep the investors on the edge and denting higher yielding currencies.
   
• Aussie remained on the back foot amid renewed oil-price weakness and downbeat Australia MI inflation expectations data.
   
• The pair has broken major trendline resistance at 1.0830, bias still higher. Scope for test of 1.0880 (78.6% Fib).
   
• Technical indicators on weekly charts are bullish, RSI strong above 50, Stochs are biased higher and MACD is on verge of bullish crossover.
   
• We see weakness only on break below Ichi cloud top at 1.0653. Bullish invalidation seen on decisive break below 200-DMA at 1.0612.

Support levels - 1.08, 1.0762 (5-DMA), 1.0703 (20-DMA), 0.1653 (cloud top)

Resistance levels - 1.0880 (78.6% Fib), 1.09, 1.0935 (May 1 high), 1.0945 (88.6% Fib)

Call update: Our previous long call (http://www.econotimes.com/FxWirePro-AUD-NZD-breaks-100-DMA-at-10671-eyes-trendline-at-10830-stay-long-833838) has hit all targets.

Recommendation: Bias higher. Book partial profits, raise trailing stop to 1.08, hold for further upside. Target 1.0880/ 1.09/ 1.0935.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 2.95849 (Neutral), while Hourly NZD Spot Index was at -64.4947 (Neutral) at 0715 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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