- AUD/NZD broke 20-DMA and hit 2-week highs at 1.0550 after Aussie was buoyed by stellar jobs data.
- Australia's jobs data was upbeat across most major indicators, against expectations of a minor correction.
- The economy added 52.1K in full time jobs, while the jobless rate dropped to 5.5%. Meanwhile, the participation rate improved to 64.9%.
- The pair has retraced from session highs to currently trade at 1.0528 levels.
- Technical indicators have turned bullish, RSI is biased higher, Stochs have rolled over from oversold levels and MACD is showing a bullish crossover.
- We see scope for further upside, close above 20-DMA will confirm bullishness.
- Major trendline support seen at 1.040 levels, we see weakness only on break below.
Support levels - 1.05, 1.0463 (5-DMA), 1.040 (trendline)
Resistance levels - 0.0550 (session high), 1.0602 (200-DMA), 1.0631 (38.2% Fib)
Recommendation: Good to go long on close above 20-DMA 1.0525, SL: 1.0460, TP: 1.06/ 1.0630/ 1.07
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 67.2656 (Neutral), while Hourly NZD Spot Index was at 6.38988 (Neutral) at 0700 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
