- AUD/NZD has resumed upside, breaks out of consolidation along 55-EMA, bias higher.
- Aussie buoyed by upbeat trade balance data which came in at 1.527 billion surplus, beating forecasts at $650 million.
- Price has broken into daily cloud base and holds support at 5-DMA at 1.0704.
- Technical studies are biased higher. RSI above 50 and momentum studies are bullish.
- We see +ve DMI dominance and MACD supports upside. Weakness only on break below 55-EMA.
- Break above daily cloud finds next major resistance at 200W SMA at 1.0758. Break above required for further gains.
- On the flipside, we see weakness on break below 55-EMA, scope then for test of 21-EMA at 1.0649.
- After upbeat trade balance data, focus now on RBA Monetary Policy Statement (Friday).
Support levels - 1.0703 (5-DMA), 1.0686 (55-EMA), 1.0624 (20-DMA)
Resistance levels - 1.0759 (200W SMA), 1.0781 (100-DMA), 1.0794 (38.2% Fib)
Recommendation: Good to go long on dips around 1.07/0710, SL: 1.0680, TP: 1.0755/ 1.0780/ 1.08.
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