#AUDNZD @ 1.12453 defends the previous day’s bounce off 21-SMA, picks up bids of late., @nehcap view: Further upside expected (Pivot Orderbook analysis)

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• AUD/NZD defends the previous day’s bounce off 21-SMA, picks up bids of late.
• Firmer RSI, sustained trading beyond the key SMA, trend lines favor buyers.
• Triple tops around 1.1255-60 appear tough nuts to crack for bulls.
• Bears need validation from 200-SMA, monthly support line.

The pair currently trades last at 1.12453.

The previous day high was 1.1246 while the previous day low was 1.1206. The daily 38.2% Fib levels comes at 1.123, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1221, expected to provide support.

AUD/NZD picks up bids to reverse the early Asian session losses near 1.1240 on Thursday. The cross-currency pair’s latest moves ignore the mixed Aussie data, as well as strong New Zealand GDP numbers, while directing buyers towards the three-week-old horizontal hurdle.

Australia’s Employment Change rose to 33.5K, versus 35K expected and -40.9K prior during August. Further, the Unemployment Rate also rose beyond 3.4% market consensus and the previous readings to 3.5% whereas the Participation Rate matched 66.6% forecasts versus 66.4% prior. Earlier in the day, Australia’s Consumer Inflation Expectations softened to 5.4% for September versus 6.7% expected and 5.9% prior.

Earlier in the day, New Zealand’s (NZ) second quarter (Q2) Gross Domestic Product (GDP) grew 1.7% QoQ compared to 1.0% market expectations and a prior contraction of 0.2%, per the latest report from Statistics New Zealand. The YoY figures came in as 0.4% versus 0.2% expected and 1.2% previous readouts.

That said, the upward sloping RSI (14) joins the AUD/NZD pair’s successful rebound from the 21-SMA, and teases another battle with the all-important 1.1255-60 horizontal resistance area. Following that, tops marked during October 2017 around 1.1290 could test the bulls.

Meanwhile, pullback moves need a clear downside break of the 21-SMA support, near 1.1215 by the press time, to convince sellers.

Even so, an upward sloping support line from August 17 and the 200-SMA, respectively near 1.1150 and 1.1130, could challenge the AUD/NZD bears.

Trend: Further upside expected

Technical Levels: Supports and Resistances

AUDNZD currently trading at 1.1241 at the time of writing. Pair opened at 1.1242 and is trading with a change of -0.01% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.1176, 50 SMA 1.1113, 100 SMA @ 1.1073 and 200 SMA @ 1.0897.

The previous day high was 1.1246 while the previous day low was 1.1206. The daily 38.2% Fib levels comes at 1.123, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1221, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.1217, 1.1191, 1.1177
• Pivot resistance is noted at 1.1257, 1.1271, 1.1296

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