AUD/NZD breaks major resistance at 1.0890, bias higher
AUD/NZD has broken major trendline resistance at 1.0890 on the weekly charts, bias still higher.
Kiwi dented after New Zealand Treasury's bearish GDP forecasts, supports further upside in the pair.
Treasury expects the RBNZ to kick-off tightening in mid-2018. The Treasury also sees a smaller surplus in 2019-21 on lower growth.
Technical studies are highly bullish, scope for test of 1.1018 (Mar 16 high).
RSI on weekly charts is at 61 and biased higher. Stochs and MACD support upside in the pair.
Price action above weekly cloud and 200-W moving average. We see weakness only on retrace below.
Oscillators on daily charts are at overbought levels, so some caution advised.
Support levels - 1.0857 (5-DMA), 1.08, 1.0764 (20-DMA)
Resistance levels - 1.0935 (May 1 high), 1.0973 (61.8% Fib of 1.4129 to 1.0237 fall), 1.1018 (Mar 16 high)
Good to go long on dips around 0.09 levels, SL: 1.0855, TP: 1.0935/ 1.0975/ 1.1015
Kiwi dented after New Zealand Treasury's bearish GDP forecasts, supports further upside in the pair.
Treasury expects the RBNZ to kick-off tightening in mid-2018. The Treasury also sees a smaller surplus in 2019-21 on lower growth.
Technical studies are highly bullish, scope for test of 1.1018 (Mar 16 high).
RSI on weekly charts is at 61 and biased higher. Stochs and MACD support upside in the pair.
Price action above weekly cloud and 200-W moving average. We see weakness only on retrace below.
Oscillators on daily charts are at overbought levels, so some caution advised.
Support levels - 1.0857 (5-DMA), 1.08, 1.0764 (20-DMA)
Resistance levels - 1.0935 (May 1 high), 1.0973 (61.8% Fib of 1.4129 to 1.0237 fall), 1.1018 (Mar 16 high)
Good to go long on dips around 0.09 levels, SL: 1.0855, TP: 1.0935/ 1.0975/ 1.1015