FxWirePro: AUD/USD breaks major support at 0.7575, bias lower, stay short

• AUD/USD hit fresh 5-month lows at 0.7535 on Friday last week, bias still bearish.
   
• The pair has taken support at June 22 low (0.7535) and edged higher to currently trade at 0.7556.
   
• Central bank divergence to keep downside intact. Technical studies also support downside in the pair.
   
• Market continues to expect the RBA to remain on hold for an extended period, while Fed fund futures yields continue to price the chance of a December rate hike at almost 100%.
   
• Price action has broken major trendline support at 0.7575 raising scope for further weakness. Next bear target is 61.8% Fib at 0.7528.
   
• On the flipside, 20-DMA at 0.7654 is major resistance, bearish invalidation on break above.

Support levels - 0.7535 (double bottom), 0.7528 (61.8% Fib retrace of 0.7160 to 0.8125 rally), 0.75 (78.6% Fib retrace of 0.7328 to 0.8125 rally)

Resistance levels - 0.7575 (trendline), 0.7585 (5-DMA), 0.7654 (20-DMA)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-breaks-major-trendline-support-at-07635-hits-fresh-multi-month-lows-at-07609-1005863) has hit TP2.

Recommendation: Bias lower, stay short for further downside.

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