- Aussie muted on RBA, while the kiwi slightly weaker after New Zealand’s business confidence ebbed lower in July.
- Aussie supported after Australian Consumer Confidence rose for the second straight week, up 2.9% to its highest point since late Feb.
- AUD/NZD has bounced off 20-DMA on Monday's trade and has broken 100-DMA at 1.0671.
- Upside finds stiff resistance at weekly 100-SMA at 1.0683, pair struggling to close above from last 2 weeks.
- Technical indicators on weekly charts are bullish, RSI strong above 50, Stochs are biased higher and MACD is on verge of bullish crossover.
- We see scope for test of trendline resistance at 1.0840 on decisive break above weekly 100-SMA 1.0683.
- Bullish invalidation seen on decisive break below 200-DMA at 1.0611, scope then for test of 1.0523 (23.6% Fibo).
Support levels - 1.0646 (5-DMA), 1.0618 (38.2% Fibo 1.10188 to 1.03706 fall), 1.0614 (20-DMA), 1.0523 (23.6% Fib)
Resistance levels - 1.07, 1.0771 (61.8% Fib retrace of 1.1018 to 1.0370 fall), 1.08, 1.0840 (trendline)
Recommendation: Watch out for decisive break above 100-DMA to go long, SL: 1.1640, TP: 1.07/ 1.0770/ 1.08
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -57.905 (Neutral), while Hourly NZD Spot Index was at 32.576 (Neutral) at 0600 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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