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FxWirePro: AUD/NZD tests resistance at wide range channel base, bullish on breaks above

AUD/NZD has pulled out of the consolidation phase and re-entered its wide range channel between 1.0895 and 1st July highs of 1.1429. AUD led rally in response to surprisingly strong Australian jobs data has buoyed the pair higher. 

  • The pair has broken above 200 DMA at 1.0767 and is currently trading at 1.0907, with next hurdle seen at  1.0921 (50% of Sep/Oct fall) then 1.0982 (Oct 13 high)
     
  • AUD/NZD bulls could target the 55 DMA at 1.0923 for a recovery back above the 1.10 handle. 
     
  • Immediate supports on the downside are located at 1.0849, 38.2% of post jobs bounce then 1.0816 61.8%. 
     
  • Some consolidation cloud be seen around channel base. We would be bullish on breaks above. Pullbacks could be seen towards 200 DMA at 1.0767. Break below 200 DMA could invalidate bullish bias.

Recommendation: Wait for convincing break above 1.0895 to go long

RES: 

R1: 1.0921 (50% of Sep/Oct fall) 
R2: 1.0982 (Oct 13 high)
R3: 1.0987 (Oct 6 high)

SUP:

S1: 1.0849, 38.2% of post jobs 
S2: 1.0767 (200 DMA)
S3: 1.0703 (20 DMA)

 

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