- AUD/NZD consolidates break above 'Triangle Top', extends range trade for the second session.
- The pair remains capped at 1.09 handle, struggles to break above 200-DMA which is stiff resistance at 1.0881.
- Break above could see further upside, scope then for test of 61.8% Fib at 1.0983.
- Kiwi remains weak on weak economic data and as markets push out expectations of any rate hikes from RBNZ into 2019.
- Technical studies are bullish. We see bullish divergence on RSI and Stochs which adds to bullish bias.
- Rejection at 200-DMA could see weakness till 21-EMA at 1.0742. Violation there invalidates bullish bias.
Support levels - 1.0858 (5-DMA), 1.0794 (38.2% Fib), 1.0742 (21-EMA)
Resistance levels - 1.0881 (200-DMA), 1.09, 1.0983 (61.8% Fib)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-NZD-finds-major-resistance-at-10830-good-to-go-long-on-break-above-1306773) has hit TP1/2.
Recommendation: Book partial profits. Watch out for break above 200-DMA for further upside.
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