- AUD/NZD finds stiff resistance at daily cloud base at 1.0720, break above will see further upside.
- The pair is holding support at 55-EMA at 1.0683, price action remains rangebound.
- The pair is extending sideways ahead of the Reserve Bank of Australia's policy meeting.
- Technical studies are biased higher. RSI above 50 and momentum studies are bullish. We see +ve DMI dominance and MACD supports upside.
- Break above daily cloud finds next major resistance at 200W SMA at 1.0759. Break above required for further gains.
- On the flipside, we see weakness on break below 55-EMA, scope then for test of 21-EMA at 1.0639.
Support levels - 1.0694 (5-DMA), 1.0683 (55-EMA), 1.0603 (20-DMA)
Resistance levels - 1.0756 (nearly converged 110-EMA & 200W SMA), 1.0785 (100-DMA), 1.0794 (38.2% Fib)
Recommendation: Good to go long on break into daily cloud, SL: 1.0683, TP: 1.0755/ 1.0785/.08
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -70.9977 (Neutral), while Hourly NZD Spot Index was at -63.026 (Neutral) at 0900 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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