- AUD/NZD has broken major trendline resistance at 1.0890 on the weekly charts, bias still higher.
- Kiwi dented after New Zealand Treasury's bearish GDP forecasts, supports further upside in the pair.
- Treasury expects the RBNZ to kick-off tightening in mid-2018. The Treasury also sees a smaller surplus in 2019-21 on lower growth.
- Technical studies are highly bullish, scope for test of 1.1018 (Mar 16 high).
- RSI on weekly charts is at 61 and biased higher. Stochs and MACD support upside in the pair.
- Price action above weekly cloud and 200-W moving average. We see weakness only on retrace below.
- Oscillators on daily charts are at overbought levels, so some caution advised.
Support levels - 1.0857 (5-DMA), 1.08, 1.0764 (20-DMA)
Resistance levels - 1.0935 (May 1 high), 1.0973 (61.8% Fib of 1.4129 to 1.0237 fall), 1.1018 (Mar 16 high)
TIME TREND INDEX OB/OS INDEX
1H Bullish Overbought
4H Bullish Overbought
1D Bullish Overbought
1W Bullish Neutral
Recommendation: Good to go long on dips around 0.09 levels, SL: 1.0855, TP: 1.0935/ 1.0975/ 1.1015
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