- AUD/NZD extends choppy trade between 55 and 110-EMAs, breakout will provide clear direction.
- The pair is trading 0.25% lower on the day at 1.0709 at the time of writing.
- Upside was capped below 110-EMA at 1.0752 and we see further gains only on break above.
- Focus now on RBNZ rate decision due later this week for further impetus.
- The central bank is expected to hold the official cash rate at 1.75 percent this Thursday.
- Focus will be on Governor Orr's take on inflation, the recent decline in the NZD and the new mandate of employment.
- Technical studies are biased higher. RSI shows strength above 50 and momentum studies are bullish.
- Break above daily cloud finds next major resistance at 200W SMA at 1.0758 ahead of major trendline at 1.0850.
- On the flipside, we see weakness on break below 55-EMA, scope then for test of 21-EMA at 1.0666.
Support levels - 1.0710 (5-DMA), 1.0688 (55-EMA), 1.0666 (21-EMA)
Resistance levels - 1.0752 (110-EMA), 1.0775 (100-DMA), 1.0815 (cloud top)
Recommendation: Watch out for break above 110-EMA for further upside.
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