- AUD/NZD starts the week on a positive note, is trading 0.15% higher on the day at 1.0940 at the time of writing.
- The pair has shown breakout above 200-DMA raising scope for further upside.
- Upside has broken above 1.0935 (major trendline resistance), we see further gains on cards.
- Technical indicators are bullish. RSI shows strength above 60, momentum studies are bullish.
- MACD is showing a bullish crossover on signal line. We also evidence +ve DMI crossover on -ve DMI which adds to bullish bias.
- Decisive break above major trendline resistance at 1.0935 targets 61.8% Fib at 1.0983.
- Retrace and close below 200-DMA negates bullish bias.
Support levels - 1.09, 1.0865 (5-DMA), 1.0862 (200-DMA)
Resistance levels - 1.0983 (61.8% Fib), 1.10, 1.1072 (Jan 29 high)
Recommendation: Good to go long on decisive break above 1.0935, SL: 1.0860, TP: 1.0980/ 1.1070
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -107.714 (Bearish), while Hourly NZD Spot Index was at -173.433 (Bearish) at 1145 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
