FxWirePro: AUD/NZD breaks major resistance at 1.0890, bias higher, stay long

• 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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