FxWirePro: AUD/NZD pivotal at 200-week MA, bias bullish

Chart - Courtesy Trading View 

Spot Analysis:

AUD/NZD was trading 0.09% higher on the day at 1.0636 at around 09:30 GMT.

Previous Week's High/ Low: 1.0643/ 1.0578

Previous Session's High/ Low: 1.0639/ 1.0583

Fundamental Overview:

Tepid risk appetite, cautious mood ahead of the key US data/events challenge momentum.

Surging covid infections globally weigh on the sentiment across the board.

Evergrande news adds to the market’s pessimism amid growing Omicron covid variant cases.

Evergrande is scheduled to hold a meeting with bondholders on January 7-10 to vote on proposals including one on delaying the redemption date of some bonds to July 8 from Jan. 8

Technical Analysis:

- The pair has retraced a brief dip below 200H MA

- GMMA indicator shows major and minor trend are bullish

- Price action is attempting break above 200-week MA

- Momentum is bullish, volatility is high and rising 

Major Support and Resistance Levels:

Support - 1.0629 (200-week MA), 1.0614 (5-DMA), 1.0581 (20-DMA)

Resistance - 1.0648 (Upper BB), 1.0684 (55-month EMA), 1.07

Summary: AUD/NZD is extending upside for the 5th straight week, outlook bullish. Scope for test of 1.07 levels.