- AUD/NZD finds support at 5-DMA at 1.0552, we see minor weakness on break below.
- RBA minutes showed the policymakers see little reason for a near-term move in policy. While fresh China slowdown concerns knocking the kiwi lower.
- The pair is trading 0.24% higher on the day, edging higher from session lows at 1.0552.
- Price has broken above 78.6% Fib at 1.0567, but struggles at 20-DMA at 1.0588.
- Technical indicators are biased higher, we see scope for further upside.
- RSI and Stochs have rolled over from oversold levels and MACD is showing a bullish crossover on signal line.
- Decisive breakout above 20-DMA could see further upside.
- NZ GDT price index and Consumer Price Index (CPI) for the March quarter, due this Thursday will be in focus for further impetus.
Support levels - 1.0551 (5-DMA), 1.0490 (major trendline), 1.0475 (88.6% Fib), 1.0412 (June 14 low)
Resistance levels - 1.0588 (20-DMA), 1.06, 1.6089 (55-EMA)
Recommendation: Good to go long on break above 20-DMA, SL: 1.0540, TP: 1.0680/ 1.07/ 1.0720
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
