FxWirePro: AUD/USD relief rally short-lived, upside finds stiff resistance at 1H 200 SMA

Refer AUD/USD chart on Trading View

• Aussie bulls find support following news of Australian Treasurer Scott Morrison's victory to become the new Australian Prime Minister. Australian financial markets view Morrison as the best outcome.
   
• AUD/USD edges higher from lows of 0.7238 to hit session highs of 0.7289.
   
• Ongoing US-China trade spat keeps pressure on. The latest US tariffs to collect 25% duties on China’s imports kicked-in on Thursday.
   
• The relief rally could be short-lived, we see stiff resistance at 1H 200-SMA at 0.7290. Only decisive break above could see further gains.
   
• Momentum with the bears, price action below major EMAs and cloud.Scope for test of trendline support at 0.7185.
   
• Focus now on US durable goods data and Fed Chair Powell’s speech at the Jackson Hole symposium for fresh trading impetus.

Support levels - 0.7202 (Aug 15 low), 0.7185 (trendline)

Resistance levels - 0.7317 (5-DMA), 0.7333 (21-EMA), 0.7375 (50-DMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-USD-fails-at-50-DMA-slips-lower-as-Aussie-heavily-sold-off-amid-ongoing-Australian-political-turmoil-1419245) has hit TP1.

Recommendation: Bias lower. Stay short for further weakness. 

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -25.7638 (Neutral), while Hourly USD Spot Index was at -11.7422 (Neutral) at 0500 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.