- AUD/NZD is extending gains, hovers around weekly 200-SMA at 1.0767, bias higher.
- Kiwi plunged after New Zealand’s CPI report disappointed, coming in at 0.0% versus 0.2% expectations and 0.1% last.
- After a brief phase of consolidation with a spinning top formation, the pair has extended spike.
- Technical indicators are still biased higher, RSI strong at 71 and biased higher. MACD supports trend higher.
- Bullish RSI divergence and support from MACD should see further upside in the pair.
- Upside has paused at 61.8% Fib retrace of 1.10188 to 1.03706 fall at 1.0771. Scope for test of 1.0820 (May 19 high) on break above.
- On the flipside, only break below 200-DMA support at 1.0611 will see downside resumption.
Support levels - 1.07, 1.0639 (5-DMA), 1.0618 (38.2% Fib retrace of 1.10188 to 1.03706 fall)
Resistance levels - 1.0771 (61.8% Fib), 1.08, 1.0820 (May 19 high)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-NZD-breaks-above-200-DMA-bias-higher-good-to-go-long-above-10680-805192) has almost hit all targets.
Recommendation: Book partial profits at highs, raise trailing stop to 1.07, hold for 1.08/ 1.0820.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 171.673 (Bullish), while Hourly NZD Spot Index was at -6.22762 (Neutral) at 0515 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
