Slobodan Drvenica
Windsor Brokers
AUD/NZD
Australian dollar surged 0.9% vs Kiwi dollar in Wednesday’s morning, lifted by fresh hawkish signals that the RBA may opt for a rate hike next month, after Australia’s inflation rose above expectations and hit new multi-month high in May.
A full-figure rise broke through three Fibo barriers (38.2%; 50% and 61.8% retracement of 1.1030/1.0732 downtrend) and pressuring the top of daily cloud (1.0943).
Breach of narrowing cloud top to expose targets at 1.0959 (Fibo 76.4%) and 1.10 (psychological; Fibo 100% expansion of the current third wave of five-wave cycle from 1.0732 higher base).
Daily technical indicators are in full bullish setup but about to enter overbought territory, which may slow bulls for consolidation / limited correction.
Supports at 1.0916/1.0890 zone should contain dips and keep larger bulls intact.
Res: 1.0959; 1.1000; 1.1.1030; 1.1062.
Sup: 1.0916; 1.0890; 1.0846; 1.0825.
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
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