AUD/NZD chart on Trading View used for analysis
- AUD/NZD edges higher from 6-week lows at 1.0396, bias is bearish.
- Bid tone around the NZD strengthened on short-covering as the RBNZ failed to meet dovish market pricing.
- The central bank kept the interest rates unchanged 1.75 percent in an expected dovish shift but lack of a clear-cut signal that rates will be cut soon came as a hawkish surprise.
- The move sent the kiwi spiralling higher across the board.
- The pair remains capped below 55-EMA and daily cloud top. RSI is below 50 and bias is lower, we see -ve DMI dominance which adds to the bearish bias.
- We see scope for test of major trendline support at 1.0325. Violation there could see further weakness.
Support levels - 1.0325 (trendline), 1.03, 1.0237 (Sept 2016 low)
Resistance levels - 1.0495 (5-DMA), 1.0517 (20-DMA), 1.0559 (55-EMA)
Recommendation: Good to stay short on upticks, SL: 1.0560, TP: 1.04/ 1.0325
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
