FxWirePro: AUD/NZD breaks above 78.6% Fib, bias higher, good to go long on dips

• Strong Chinese PPI data and upbeat Aussie NAB business conditions buoy AUD/NZD.
• Australia’s January NAB business conditions rose to 16 vs previous 11, while NAB business confidence was up to 10 vs previous 6.
• Chinese PPI rose for the fifth straight month and given the strong correlation with copper, iron ore and other industrial metals is likely to keep AUD supported.
• The pair hit fresh 3-1/2 month highs of 1.0693 before retreating slightly to trade at 1.0687 levels.
• We have seen break of 78.6% Fib retrace of 1.0765 to 1.0326 fall at 1.067.
• Intraday bias higher, momentum studies are highly bullish, we see scope for test of 1.0745 (major trendline resistance).
   

Support levels - 1.0622 (5-DMA), 0.16, 1.0597 (61.8% Fib)

Resistance levels - 1.07, 1.0715 (88.6% Fib), 1.0745 (falling trendline)

TIME  TREND INDEX  OB/OS INDEX    

1H          Neutral               Neutral       
4H          Bullish                Near Overbought        
1D          Bullish                Near Overbought        
1W         Bullish                Neutral    
  
Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-NZD-spikes-above-200-DMA-to-hit-multi-week-highs-at-10596-good-to-go-long-on-dips-531430) has achieved all targets.

Recommendation: Goog to go long on dips around 1.0670, SL: 0.1620, TP: 1.07/ 1.0745/ 1.0765

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 104.195(Highly bullish), while Hourly NZD Spot Index was at -94.0125 (Highly bearish) at 0515 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.