- AUD/NZD is trading largely unchanged on the day, spinning top formation seen on daily charts.
- Upside remains capped at 100-DMA at 1.0679, intraday bias lower.
- The pair finds strong support at 200-DMA at 1.0611, break below to see further weakness.
- 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 100-DMA.
- Bullish invalidation seen on break below 200-DMA at 1.0611, scope then for test of 1.0523 (23.6% Fibo)
Support levels - 1.0618 (38.2% Fib), 1.0611 (200-DMA), 1.0588 (20-DMA), 1.0523 (23.6% Fib retrace of 1.1018 to 1.0370 fall)
Resistance levels - 1.0652 (5-DMA), 1.0679 (100-DMA), 1.07, 1.0771 (61.8% Fib retrace of 1.1018 to 1.0370 fall)
Call update: We had advised a long in our previous call (http://www.econotimes.com/FxWirePro-AUD-NZD-finds-strong-support-at-200-DMA-weakness-only-on-break-below-816494).
Recommendation: We are skeptical about the uptrend. Recommend exiting at highs. Watch out for decisive break above 100-DMA.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 58.4116 (Neutral), while Hourly NZD Spot Index was at 118.438 (Bullish) at 0900 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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