- AUD/NZD opened with a bullish gap up, but has been rejected at major trendline resistance at 1.1055.
- We see a Doji formation at highs on the daily charts which raises scope for retrace.
- Technical indicators support upside in the pair. Price action is above major EMAs.
- The pair has broken above 100-DMA at 1.1003 and we see weakness on retrace below.
- RSI is above 50 levels and rising. Stochs also show bullish momentum.
- Breakout at major trendline resistance at 1.1055 could see test of 1.1119 (61.8% Fib retrace of 1.1290 to 1.0844 fall).
Support levels - 1.1003 (100-DMA), 1.0972 (5-DMA), 1.0954 (20-DMA)
Resistance levels - 1.1055 (major trendline), 1.1075 (cloud top), 1.1119 (61.8% Fib retrace of 1.1290 to 1.0844 fall)
Recommendation: Good to go long on breakout at 1.1055, SL: 1.10/ TP: 1.11/ 1.1120/ 1.1140
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 18.0238 (Neutral), while Hourly NZD Spot Index was at -151.805 (Bearish) at 0630 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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