- AUD/NZD is trading in a slopping channel pattern and price action has bounced off channel base support in last week's trade.
- The pair is extending upside for 4th consecutive session and we see scope for further upside.
- Technical studies have turned bullish with bullish MACD line crossover on signal line.
- Stochs have rolled over from oversold levels and RSI is biased higher.
- Price action finds immediate resistance at 21-EMA at 1.0784. Breakout there will target 200-DMA at 1.0846.
- On the flipside, 5-DMA at 1.0722 is immediate support. Break below will see some weakness.
Support levels - 1.0722 (5-DMA), 1.0654 (Feb 22 low), 1.0567 (78.6% Fib retrace of 1.0370 to 1.1290 rally)
Resistance levels - 1.0783 (21-EMA), 1.0846 (200-DMA), 1.0867 (55-EMA)
Recommendation: Good to go long on breakout at 21-EMA, SL: 1.0720, TP: 1.08/ 1.0845/ 1.0860.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 96.0223 (Bullish), while Hourly NZD Spot Index was at -72.974 (Neutral) at 0520 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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