FxWirePro: AUD/USD extends gains above 0.77 handle, eyes 20-DMA at 0.7740

• Aussie buoyed by upbeat retail sales data, AUD/USD extends gains above 0.77 handle.
   
• The Aussie Retail Sales printed at 0.6%, beating expectations at 0.3% and compared to the previous figure of 0.2% in January.
   
• That said, a miss in China's Services PMI which came in below expectation, printing at a 52.3 contraction versus the forecast 54.5 expansion is likely to keep gains limited.
   
• Technical indicators are turning bullish and bullish divergence on RSI and Stochs raises scope for upside.
   
• Price action has shown a breakout at 1H 200-SMA at 0.7694 and Stochs are on verge of rollover from oversold levels.
   
• 20-DMA at 0.7740 is strong resistance. Breakout above with confirmation on Stochs and RSI will take the pair higher.
   
• Focus now on US NFP data, with US employment and wage growth figures hitting the markets on Friday.

Support levels - 0.7637 (converged trendline & 78.6% Fib), 0.76, 0.7532 (Nov 21 low), 0.75

Resistance levels - 0.7674 (5-DMA), 0.77, 0.7743 (61.8% Fib)

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 89.8944 (Bullish), while Hourly USD Spot Index was at -32.9791 (Neutral) at 0330 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex. 

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