FxWirePro: AUD/NZD consolidates break above trendline resistance, break below 5-DMA could see minor weakness

Refer AUD/NZD chart on Trading View

• AUD/NZD consolidates break above trendline resistance, trades 0.19% lower on the day.
   
• The pair has edged lower from new 7-month highs at 1.1034, hovers at 1.0994 levels.
   
• AUD/NZD trades with a strong upside bias. Technical indicators support further gains.
   
• The pair has broken consolidation phase since July and we see resumption of upside.
   
• Price action has broken stiff trendline resistance and has edged above 61.8% Fib raising scope for test of 78.6% Fib at 1.1118. 
   
• 5-DMA is immediate support at 1.0971. Bullish invalidation only on retrace below 200-DMA. 

Support levels - 1.0983 (61.8% Fib), 1.0971 (5-DMA), 1.0889 (50% Fib)

Resistance levels - 1.1072 (Jan 29 high), 1.1118 (78.6% Fib), 1.1140 (Nov 14 high)

Recommendation: Good to go long on dips, SL: 1.0950, TP: 1.1070/ 1.1115 

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 41.3437 (Neutral), while Hourly NZD Spot Index was at 21.947 (Neutral) at 1215 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.