- AUD/NZD edges higher for a 2nd straight session, gains 0.47% on the day, bias higher.
- The pair has bounced off at 110-EMA support, has failed to close below.
- Aussie boosted by upbeat Australia retails sales data which arrived at +0.4% m/m, beating expectations at +0.3%.
- Further, Australia ANZ Job Advertisements increased to 1.5% in May from previous -0.2%.
- The pair has hit session highs at 1.0887 before paring some gains to currently trade at 1.0878.
- Upside finds strong resistance at 200-DMA at 1.0833, decisive break above could see further upside.
- Scope then for test of 61.8% Fib at 1.0983. Break below 110-EMA negates bullish bias.
- Focus now on the Reserve Bank of Australia’s (RBA) monetary policy decision, scheduled to be held on Tuesday for further impetus.
Support levels - 1.0846 (5-DMA), 1.08, 1.0785 (110-EMA)
Resistance levels - 1.0883 (200-DMA), 1.09, 1.0961 (May 25 high), 1.0983 (61.8% Fib)
Recommendation: Good to go long on decisive break above 200-DMA, SL: 1.0840, TP: 1.09/ 1.960/ 1.0985
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 144.498 (Bullish), while Hourly CHF Spot Index was at 5.44161 (Neutral) at 0915 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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