- Renewed geopolitical concerns surrounding North Korea missile threat amid talks of new US sanctions keep the high yielding currencies subdued.
- Downbeat Australia retail sales and trade figures also weighed on the Aussie.
- The pair hit lows of 1.1070, but has since retraced dip below 5-DMA at 1.1100 and is currently trading at 1.1128.
- Upside is struggling at major trendline resistance at 1.1155, we see further gains only on break above.
- Next major resistance above 1.1155 lies at 1.1173 (78.6% Fib retrace of 1.1429 to 1.0237 fall).
- Monthly charts also support upside. Price action has broken into cloud and momentum indicators support upside.
- Some consolidation likely at current levels. Bullish invalidation seen on close below weekly 5-SMA.
Support levels - 1.1101 (5-DMA), 1.1040 (1H 200-SMA), 1.0973 (61.8% Fib of 1.4129 to 1.0237 fall), 1.0945 (20-DMA)
Resistance levels - 1.1141 (Sept 1 high), 1.1155 (trendline), 1.1175 (78.6% Fib retrace of 1.1429 to 1.0237 fall), 1.12
Recommendation: Watch out for break above 1.1155 for further upside.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 60.1963 (Neutral), while Hourly NZD Spot Index was at -45.421 (Neutral) at 0900 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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