FxWirePro: AUD/NZD breaks triangle top, on track to test 78.6% Fib at 1.1175, stay long

• Kiwi continues to underperform, remains on the defensive despite upbeat China PMI data.
   
• China's August Caixin PMI unexpectedly rose to hit the strongest since Feb. China Caixin Manufacturing PMI came in at 51.6, above forecasts at 50.9.
   
• Recent NZD jawboning by RBNZ Gov Wheeler along with downbeat NZ business confidence data and overseas trade index weighs on the bird.
   
• Aussie on the other hand supported by massive gain in Australia's AiG Manufacturing PMI for August which came in at 59.8 vs. prior 56.0.
   
• AUD/NZD has shown a breakout of symmetric triangle pattern, scope for further upside.
   
• Test of 78.6% Fib retrace of 1.1429 to 1.0237 at 1.1175 on cards. Violation there could see 1.4262 (38.2% Fib of 1.3779 to 1.0020 fall).
   
• 5-DMA at 1.1008 is strong support, we see weakness on close below.

Support levels - 1.1008 (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)

Resistance levels - 1.1086 (Nov 2015 high), 1.1175 (78.6% Fib retrace of 1.1429 to 1.0237 fall), 1.12

Recommendation: Good to go long on dips around 1.1040/60, SL: 1.0970, TP: 1.11/ 1.1175/ 1.12/ 1.13

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 7.26279 (Neutral), while Hourly NZD Spot Index was at -99.0957 (Bearish) at 0430 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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