- AUD/NZD has retraced brief dip below 200-DMA at 1.0611, decisive break below will confirm weakness.
- 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 - 1.0618 (38.2% Fib), 1.0611 (200-DMA), 1.0602 (20-DMA), 1.0523 (23.6% Fib retrace of 1.1018 to 1.0370 fall)
Resistance levels - 1.0652 (5-DMA), 1.0673 (100-DMA), 1.07, 1.0771 (61.8% Fib retrace of 1.1018 to 1.0370 fall)
Recommendation: Watch out for decisive break above 100-DMA to go long.
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