• Aussie holds bullish tone versus kiwi, facing resistance at 1.0630.
• More gains seem likely for AUD/NZD while above 1.0610.
• The correction could extend to 1.0535, slightly above the 20-day moving average.

The AUD/NZD is rising on Monday, testing the 1.0630 area of the recent top. A break higher should clear the way to more gains, with a target at 1.0650. The nest strong resistance stands slightly below 1.0700.

The daily RSI is near the 70 level, suggesting some potential exhaustion and Momentum is moving to the downside. Those indicators suggest moves between 1.0555 and 1.0630 could continue in the short term.

From the current level, a correction to the 1.0535/40 area, a horizontal level and also the 20-day moving average seems possible without affecting the positive outlook for the Aussie.

At the beginning of the month, it broke a downtrend line. Now key moving averages point north. A firm decline under 1.0500 could negate the bullish bias in AUD/NZD.

AUD/NZD daily chart