- AUD/NZD extends sideways grind, finds strong support at 55-EMA at 1.0684.
- AUD/NZD finds stiff resistance at daily cloud base and has also been capped at 61.8% Fib at 1.0721.
- Price action remains rangebound with multiple doji formations on daily charts.
- Dovish RBA continues to weigh on the Aussie. But Fitch rating affirmation providing support.
- Fitch affirms Australia at 'AAA'; Outlook Stable. Said it does not see a severe housing market slowdown.
- Further, Fitch forecasts a modest acceleration in GDP growth from 2.3% in 2017 to 2.7% in both 2018 and 2019, above the 'AAA' median.
- Also, technical studies are biased higher. RSI above 50 and momentum studies are bullish. We see +ve DMI dominance and MACD supports upside.
- Break above daily cloud finds next major resistance at 200W SMA at 1.0758. Break above required for further gains.
- On the flipside, we see weakness on break below 55-EMA, scope then for test of 21-EMA at 1.0649.
Support levels - 1.0696 (5-DMA), 1.0684 (55-EMA), 1.0615 (20-DMA)
Resistance levels - 1.0758 (200W SMA), 1.0781 (100-DMA), 1.0794 (38.2% Fib)
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