FxWirePro: AUD/USD eyes 50-DMA at 0.7911, bias higher, stay long

• AUD/USD breaks above 20-DMA, to hit fresh weekly highs at 0.7897 last week, bias higher.
   
• The pair is currently trading in a narrow range, finds next major resistance at 0.7911 (50-DMA).
   
• Aussie has remained muted despite upbeat China PPI data released earlier today.
   
• China's producer price index jumped 6.9% year-on-year in September, beating the estimates at 6.6%.
   
• Technical studies also support upside in the pair. RSI and Stochs are sharply higher and MACD shows bullish crossover.
   
• Break above 50-DMA could see test of weekly 200-SMA at 0.7925. On the flipside, we see weakness on break below daily cloud at 0.7848.

Support levels - 0.7863 (20-DMA), 0.7848 (cloud base), 0.7826 (5-DMA)

Resistance levels - 0.79, 0.7911 (50-DMA), 0.7925 (Weekly 200-SMA)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-holds-5-DMA-support-Bullish-Cypher-pattern-adds-scope-for-upside-947231) has hit TP1/2.

Recommendation: Book partial profits at highs, raise trailing stop to 0.7845, hold for further upside.

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