- AUD/NZD consolidates previous sessions spike, hits fresh 3-month highs at 1.0829.
- The pair finds major trendline resistance at 1.0830, break above to see further upside.
- Aussie subdued slightly after decline in decline in Australian Home Loans. The RBA is widely expected to stand pat well into 2019 on weak economic data.
- Kiwi supported on strong NZ Business sentiment PMI, which rose from previous 52.2 to 58.9 in April.
- Technical indicators are biased higher. Bullish divergence adds to upside bias.
- Break at 1.0830 likely to see test of 200-DMA at 1.0878. Violation there to see further upside.
- On the downside we see immediate support at 110-EMA at 1.0752. Break there will see resumption of weakness.
Support levels - 1.08, 1.0752 (110.-EMA), 1.0744 (5-DMA)
Resistance levels - 1.0830 (trendline), 1.0878 (200-DMA), 1.09
Recommendation: Good to go long on breakout at 1.0830, SL: 1.0750, TP: 1.0875/ 1.09/ 1.0985
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 60.0505 (Neutral), while Hourly NZD Spot Index was at -146.666 (Bearish) at 0815 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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