- AUD/NZD rejected at 1.0487, finds major resistance at 1.0485 which is converged 50&100 DMAs.
- The pair is trading with a bullish bias, RSI has edged above 50 with scope to run further.
- Stochs are biased higher and MACD is showing a bullish crossover.
- Break above 1.0485 will see upside upto 1.0547 (50% Fib of 1.0765 to 1.0330 fall).
- Major trendline support at 1.0330 (converged trendlines), we see weakness only on break below.
Support levels:
S1 - 1.0438 (trendline)
S2 - 1.0425 (20-DMA)
S3 - 1.04 (5-DMA)
Resistance levels:
R1 - 1.0485 (converged 50&100 DMAs)
R2 - 1.05 (50% Fib of 1.02371 to 1.07647 rally)
R3 - 1.0547 (50% Fib of 1.0765 to 1.0330 fall)
Fundamental factors:
New Zealand dairy prices post sharpest decline in over 10 months, weaker than market consensus
Recommendation: Good to go long on break above 1.0485, SL: 1.0430, TP: 1.0550/ 1.06
FxWirePro Currency Strenght Index: FxWirePro's Hourly AUD Spot Index was at 83.0266(Bullish), while Hourly NZD Spot Index was at 31.4888 (Neutral) at 0620 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
