AUD/NZD tests channel-base resistance, 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 1.0899, with next hurdle seen at 1.0921 (50% of Sep/Oct fall) then 1.0982 (Oct 13 high).

We would be bullish on convincing breaks above channel-base. AUD/NZD bulls could then target the 55 DMA at 1.0923 for a recovery back above the 1.10 handle.

Some consolidation cloud be seen around channel base. Pullbacks could be seen towards 200 DMA at 1.0767. Immediate supports on the downside are located at 1.0849, 38.2% of post jobs bounce then 1.0816 61.8% bounce.

Break below 200 DMA at 1.0767 will 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)