FxWirePro: AUD/USD extends bullish gap open, eyes 55-EMA at 0.7510, stay long

• AUD/USD extends bullish gap open, trades 0.42% higher on the day at 0.7460, bias higher.
   
• The pair has broken above 21-EMA resistance and we see scope for further upside.
   
• Aussie gets a boost in early Monday's trade, remains bolstered by rising copper prices.
   
• Favorable terms-of-trade have helped so far, but risks around the housing market may also weigh.
   
• The major failed to extend weakness below 61.8% Fib at 0.7327, bullish divergence on RSI and Stochs keeps scope for upside in the pair.
   
• Technical indicators on daily charts are bullish. Stochs and RSI biased higher. MACD and DMI are showing bullish crossover.
   
• Break above stiff resistance at 21-EMA at 0.7431 now eyes 55-EMA at 0.7510. Break out there could see further upside.
   
• On the flipside, we see weakness to resume on retrace below 5-DMA support at 0.7408.

Support levels - 0.7431 (21-EMA), 0.7408 (5-DMA), 0.7327 (61.8% Fib), 0.73

Resistance levels - 0.7505 (23.6% Fib), 0.7510 (55-EMA), 0.7567 (May 11 high)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-USD-finds-stiff-resistance-at-21-EMA-bullish-divergence-keeps-scope-for-upside-1398476) is progressing well.

Recommendation: Hold for targets. 

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 98.5255 (Bullish), while Hourly USD Spot Index was at -120.577 (Bearish) at 0445 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.