- AUD/NZD failed to break major trendline resistance at 1.1155.
- The pair has edged lower to break major support at 20-DMA at 1.1023 in last week's trade, bias lower.
- Recovery attempts in the pair were rejected shy of 5-DMA at 1.10.
- Scope for test of major support at 1.0848 which is nearly converged 50-DMA and 38.2% Fib retrace of 1.0370 to 1.1143 rise.
- On weekly charts the pair finds stiff resistance at 1.1155 (major trendline), only decisive break above 1.1155 (trendline) could see further upside.
- Aussie dented after policy makers reiterated the disinflationary impact of the strong Aussie dollar at the latest RBA minutes.
- Focus on New Zealand Q2 GDP (due Sept 20), along with the GlobalDairyTrade price auction due later today for further direction.
- New Zealand general election which will be held on Saturday, September 23 is another major risk event.
Support levels - 1.0862 (Aug 23 low), 1.0848 (38.2% Fib retrace of 1.0370 to 1.1143 rise), 1.0844 (50-DMA)
Resistance levels - 1.10 (5-DMA), 1.1023 (20-DMA), 1.11, 1.1155 (trendline)
Recommendation: Good to short rallies around 1.0960/65, SL: 1.1045, TP: 1.0860/ 1.0845/ 1.08
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -18.3214 (Neutral), while Hourly NZD Spot Index was at -53.5705 (Neutral) at 0730 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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