Refer AUD/NZD chart on Trading View
- AUD/NZD is extending break above strong trendline resistance at 1.0965, hits 7-month highs.
- The Reserve Bank of Australia (RBA) at its monetary policy meeting held today, kept the official cash rate (OCR) on hold at a record low of 1.50 percent.
- The central bank had a neutral bias and said that the A$ "remains within the range that it has been in over the past two years".
- The statement suggested that the current levels for the A$ is not seen by the RBA as an issue for the current policy mix.
- 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.
- Scope now for test of 78.6% Fib at 1.1118. Bullish invalidation only on retrace below 200-DMA.
Support levels - 1.0983 (61.8% Fib), 1.0952 (5-DMA), 1.0889 (50% Fib)
Resistance levels - 1.1072 (Jan 29 high), 1.1118 (78.6% Fib), 1.1140
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 141.242 (Bullish), while Hourly NZD Spot Index was at -14.4818 (Neutral) at 0630 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
