- AUD/NZD spiked past trendline resistance at 1.08 to hit fresh 2-month highs at 1.0845.
- Aussie buoyed after upbeat employment data released earlier today.
- Australia June employment change came in at 14k vs 15k expected. The jobless rate ticked higher to 5.6% as expected, while the full time employment came-in at 62K in June vs 52.1K in May.
- Bullish RSI divergence and support from MACD should see further upside in the pair.
- Momentum indicators are now in overbought zone which warrants some caution and trade with tight stop loss.
- Decisive close above 1.08 levels will find next major resistance at 1.0880 (78.6% Fib) and then 1.0935 (May 1 high).
- On the flipside, we see weakness on close below 5-DMA support at 1.0739.
Support levels - 1.0771 (61.8% Fib retrace of 1.10188 to 1.03706 fall), 1.0739 (5-DMA), 1.07, 1.0618 (38.2% Fib)
Resistance levels - 1.0820 (May 19 high), 1.0880 (78.6% Fib), 1.09, 1.0935 (May 1 high)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-NZD-hovers-around-weekly-200-SMA-at-10767-momentum-studies-bullish-stay-long-807292) has hit all targets.
Recommendation: Book full profits at highs. Watch out for close above 1.08 to go long.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 162.917 (Bullish), while Hourly NZD Spot Index was at -12.2276 (Neutral) at 0520 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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