- AUD/NZD edges lower from session highs at 1.1139, intraday bias higher.
- Markets largely ignore downbeat China October data dump, AUD/NZD spikes 0.73% higher on the day.
- The pair finds major support at 1.1030 (nearly converged trendline & 50-DMA).
- Price edging higher in a 'Rising Wedge' pattern and we see weakness only on break below 50-DMA.
- Bearish divergence on RSI and Stochs keeps scope for downside. Break below 50-DMA finds next major support at daily cloud at 1.0948.
- On the flipside, breakout above 20-DMA raises scope for test of 1.1290 (Oct 24 high) ahead of 1.13 (trendline)
Support levels - 1.1072 (23.6% Fib retracement of 1.0370 to 1.1290 rally), 1.1054 (5-DMA), 1.1029 (50-DMA), 1.0953 (daily cloud)
Resistance levels - 1.1125 (20-DMA), 1.1143 (Sept 7 high), 1.12, 1.1290 (Oct 24 high)
Recommendation: Good to go long on close above 20-DMA at 1.1125, SL: 1.1070, TP: 1.1145/ 1.12/ 1.1290.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -160.952 (Bearish), while Hourly NZD Spot Index was at -108.619 (Bearish) at 0930 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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