AUD/NZD

The pair has been in a down trend for a couple of years, currently the monthly chart is speaking the odd days have gone. The pair gave an upside breakout above at 1.09 levels. This week the pair takes the sport at the breakout level, as of now. It is moving to the crucial resistance level at 1.1027 (40-week SMA), 1.1043 (December 11, 2013), above this, it can face strong resistance at the 50-week SMA at 1.1081 levels. The weekly RSI favors adding a load on dips.

On the down side, the pair has strong support at 1.09, below this, 1.0858 and 1.0782-1.0740 are support levels. The pair looks moving to higher levels with sl 1.0790 for 1.1025, 1.1045, 1.1082, and 1.1188 levels.

While I am preparing this article, the pair has spiked to 1.1011 from 1.0980 levels. The ANZ commodity price index dropped to 2.2% with an annual decline of 3.1%. It is facing strong resistance at 200-day EMA, 1.1032 levels. Once it crosses above this, it will rally to 1.1065 and 1.1350 levels. But the daily momentum oscillators are indicating overbought signals. We expect the pair will pause its rally at the 200-day EMA.

On the down side, the pair has strong support at 1.09 (break out level), below this, it will fall to 1.0812 and 1.0730 levels.

From the above study, we recommend the following.

Sell with sl 1.1032 on a closing basis, cmp 1.1015.

Positional traders, buy on the dips for the next doom target at 1.20.

AUD/USD

The pair spiked to the initial resistance level at 50-day SMA (0.9304). Today in Asia's session the pair made a high at 0.9297 levels. The recent news from NZ, the ANZ commodity price index dropped to 2.2% with an annual decline of 3.1% made the pair to move higher. On the down side, the pair has strong support at 0.9260, below this, 0.9250 is the Intraday support level. The pair is facing selling pressure until it crosses above 0.9304 on the higher side, and the pressure will double below 0.9243 on the lower side.

Sell with sl 0.9305 and targets 0.9260, 0.9250. cmp 0.9285.