FxWirePro: AUD/USD extends sideways grind below 50-DMA, stiff resistance seen till 0.7243

AUD/USD chart - Trading View 

AUD/USD was extending sideways grind for the 3rd straight session, was trading 0.23% higher on the day at 0.7180 at around 04:30 GMT.

US President Donald Trump's recovery news combined with the optimism over the US stimulus deal lifts the overall market sentiment.

Further, the Aussie continues to benefit from news suggesting a potential Australia’s budget boost.

Australian Dep PM Michael McCormack is set to announce a further $7.5 billion in new transport infrastructure spending in Tuesday’s federal budget - reports Australian Associated Press (AAP).

Technical studies for the pair suggest a neutral bias. Pullback has held support at 110-EMA.

The pair finds stiff resistance till 0.7243 (200W MA). Break out at 200W MA will confirm further gains. Scope then for test of 78.6% Fib at 0.7573.

On the flipside, 55-EMA is immediate support at 0.7147. Retrace below will see dip till 110-EMA at 0.7021.

Major Support Levels - 0.7147 (55-EMA), 0.7069 (21W MA), 0.7021 (110-EMA)

Major Resistance Levels - 0.72, 0.7243 (200W MA), 0.73