FxWirePro: AUD/NZD set to extend bounce off 200-DMA, outlook turning bullish

AUD/NZD chart - Trading View 

AUD/NZD was trading 0.11% higher on the day at 1.0787 at around 06:10 GMT.

The pair has bounced off 200-DMA and trendline support, scope for upside resumption.

Momentum studies are bullish. Stochs and RSI are biased higher, RSI holds above the 50 mark.

Price action is grinding higher in Rising Wedge pattern and is consolidating break above weekly cloud. 

Upbeat New Zealand Retail Sales data has had little impact on the kiwi. Focus now on the RBNZ monetary policy decision for further impetus.

New Zealand Institute of Economic Research's (NZIER’s) Shadow Board sees stronger case for tightening in the upcoming May meeting. 

The pair trades within daily cloud, breakout above will propel the pair higher. On the flipside, breach below 200-DMA will negate any upside bias.

Support levels - 1.0771 (200H MA), 1.0742 (200-DMA), 1.0719 (Lower BB) 

Resistance levels - 1.0799 (Upper BB), 1.0883 (April high), 1.0957 (110-month EMA)

Summary: AUD/NZD holds above 200-DMA. Watchout for break above daily cloud for further gains. Focus on RBNZ monetary policy meet (due Wednesday) for cues.