- AUD/NZD edges higher from session lows at 1.0851, Aussie supported amid a relatively positive market sentiment.
- Upside in the pair lacks traction, price currently hovers around 50-DMA at 1.0878.
- On weekly charts, 5-SMA (1.0981) is major resistance, pair fails at weekly 5-SMA for 2nd straight week.
- Price closed below 50-DMA on Thursday's trade, we see scope for further weakness.
- Next major support lies at weekly 200 SMA at 1.0744. Further weakness only on break below.
- Techs on weekly charts are biased lower. RSI has turned lower from near overbought levels and Stochs are on the verge of rollover from overbought levels.
- Stiff resistance lies at 1.1155 (major trendline), only decisive break above could see further upside.
Support levels - 1.0848 (38.2% Fib retrace of 1.0370 to 1.1143 rise), 1.0744 (Weekly 200-SMA), 1.07
Resistance levels - 1.0896 (5-DMA), 1.0940 (trendline), 1.0979 (20-DMA)
Recommendation: Watch out for decisive break below 50-DMA for further weakness. Target 1.08/ 1.0745.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -96.2854 (Bearish), while Hourly NZD Spot Index was at -15.4001 (Neutral) at 0800 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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