FxWirePro: AUD/NZD breaks 100-DMA at 1.0671, eyes trendline at 1.0830, stay long

• Kiwi slumps across the board after worse-than expected NZ jobs data which saw unemployment drop to 4.8 percent.
   
• However, the participation rate fell 0.6 percentage points to 70.0 percent, the labour force contracted by 0.2 percent q/q.
   
• Data suggested a picture of continued moderate growth in economic activity, but still muted wage pressures.
   
• On the other side, Australia building permits data saw big jump, actual 10.9% m/m vs. expected 1.5%.
   
• Technical indicators on weekly charts are bullish, RSI strong above 50, Stochs are biased higher and MACD is on verge of bullish crossover.
   
• We see scope for test of trendline resistance at 1.0840 on decisive break above weekly 200-SMA 1.0760.
   
• Bullish invalidation seen on decisive break below 200-DMA at 1.0611, scope then for test of 1.0523 (23.6% Fibo).
   
• Focus now on RBA quarterly statement (Fri) which will provide updates on key economic indicators and provide further direction.

Support levels - 0.1669 (100-DMA), 1.0660 (5-DMA), 1.0618 (38.2% Fibo 1.10188 to 1.03706 fall)

Resistance levels - 1.0771 (61.8% Fib retrace of 1.1018 to 1.0370 fall), 1.08, 1.0840 (trendline)

Recommendation: Good to go long on dips around 1.0720, SL: 1.0660, TP: 1.0770/1.08/ 1.0840

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -42.5259 (Neutral), while Hourly NZD Spot Index was at -69.3983 (Neutral) at 1200 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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