Aussie was subdued on the day, under pressure following the release of RBA SoMP, which showed that the central bank downwardly revised CPI and GDP forecasts, and left doors open for further easing.
It is on the track to post its largest weekly gains in 5 years against the kiwi. AUD/NZD is up 2.7 percent this week till now. The pair is holding above 1.0762 (200 DMA) for the past three sessions. A weekly close above 1.0821 which is 38.2% Fibo of Sep/Nov fall reiterates bullish bias which would then propel the pair towards 1.0920 targets. 200 DMA is pivotal for a sustained rebound in the pair.
Currently the pair is trading at 1.0808, immediate resistance is seen at 1.0878 (55 EMA), while support is seen at 1.0782 (Nov 5th low). Watch for a close above 1.0821 to go long.
Recommendation: Good to go Long on breaks above 1.0821, SL: 1.0770, TP: 1.0920
Resistance Levels:
R1: 1.0852 (Nov 5th highs)
R2: 1.0878 (55 EMA)
R3: 1.0882 (Nov 4 highs)
R4: 1.0921 (50% Fibo of Sep/Nov fall)
Support Levels:
S1: 1.0782 (Nov 5th low)
S2: 1.0773 (Nov 4 th low)
S3: 1.0763 (200 DMA)
