- AUD/NZD extends upside to break stiff resistance in the 1.0774 - 1.0792 zone, bias higher.
- The pair has hit 2-week highs at 1.0828 before paring some gains to currently trade at 1.0813 levels.
- Price action has broken above daily cloud and 38.2% Fib at 1.0794 raising scope for further upside.
- We expect the kiwi to weaken as we head into the Reserve Bank of New Zealand's (RBNZ) next policy meeting.
- The RBNZ is expected to keep cash rate steady at 1.75% with little change in the policy statements.
- Technical indicators have a bullish bias. We see test of 200-DMA at 1.0861 on cards.
- Breakout at 200-DMA resistance could see test of 1.0930 (major trendline) ahead of 1.0983 (61.8% Fib).
- On the flipside, retrace below 100-DMA at 1.0729 could see resumption of weakness.
Support levels - 1.08, 1.0785 (5-DMA), 1.07, 1.0677 (23.6% Fib)
Resistance levels - 1.0861 (200-DMA), 1.0889 (50% Fib), 1.0902 (June 6, 7 high)
Recommendation: Good to go long on dips around 1.08/ 1.0810, SL: 1.0770, 1.0860/ 1.09
