- AUD/NZD has retraced from session highs at 1.0741 and is currently trading around 1.0700 levels.
- The pair has broken major trendline resistance at 1.0500 levels, bias higher.
- Momentum studies are heavily bullish, we see scope for test of 100-DMA at 1.0828.
- Australia Q2 CPI data (due Wed 27 July) in focus after the extremely weak Q1 data and consequent downgrade to the RBA’s inflation profile.
- While downbeat New Zealand CPI data in Q2 increased the odds of RBNZ rate cut in August.
- Supports on the downside are seen at 1.0588 (5-DMA), 1.0490 (trendline) and 1.0474 (20-DMA).
- Resistance on the upside aligns at 1.0741 (session high), 1.0776 (May 31 high) and 1.0828 (100-DMA).
Recommendation: Good to go long on dips around 1.0675/80, SL: 1.0585, TP: 1.0740/ 1.0775/ 1.08/ 1.0825
