FxWirePro: AUD/USD extends previous week's gains, Aussie finds support amid US-Sino trade optimism

AUD/USD chart on Trading View used for analysis

• AUD/USD is extending previous week's gains above 0.71 handle, bias higher.
   
• The major is trading 0.19% higher on the day at 0345 GMT. 
   
• Aussie buoyed on positive positive headlines regarding US-China trade war.
   
• With no macroeconomic releases from Australia or China today, market sentiment will be the major driver for price action.
   
• Technical indicators on the daily charts are turning slightly bullish. RSI is now biased higher and Stochs are on verge of rollover from oversold levels.
   
• The pair is testing resistance at 55-EMA at 0.7157, breakout could see gains upto 200-DMA at 0.7274.
   
• On the flipside, break below cloud will see major weakness.

Support levels - 0.7141 (21-EMA), 0.7116 (5-DMA), 0.7069 (cloud top)

Resistance levels - 0.7157 (55-EMA), 0.7197 (110-EMA), 0.7274 (200-DMA)

Recommendation: Stay long on breakout at 55-EMA, SL: 0.7110, TP: 0.7195/ 0.7270

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.