FxWirePro: AUD/NZD on track to test 200-DMA, outlook bullish

Chart - Courtesy Trading View 

AUD/NZD was trading 0.05% lower on the day at 1.0544 at around 07:30 GMT.

The pair has paused two successive days of upside and has formed a spinning top on the daily charts.

Price action has broken above major trendline resistance and is on track to test 200-DMA resistance at 1.0590.

Market sentiment sours amid multiple negatives concerning the Omicron COVID-19 variant.

Geopolitical fears and cautious mood before critical central bank monetary policy meetings keep antipodeans depressed.

The Asian Development Bank (ADB) on Tuesday trimmed its growth forecasts for developing Asia for this year and next to reflect risks and uncertainty brought on by the new Omicron coronavirus variant.

Focus on US Producer Price Index (PPI) for November. PPI is expected at 9.2% YoY versus 8.6% in the prior month.

Support levels - 1.0534 (5-DMA), 1.0480 (110-EMA), 1.0475 (21-week EMA)

Resistance levels - 1.0558 (55-week EMA), 1.0590 (200-DMA), 1.0601 (110-week EMA)

Summary: AUD/NZD holds bullish bias. The pair is on track to test 200-DMA. Breakout to fuel further gains.