FxWirePro: AUD/USD resumes upside after brief pause, China's fiscal stimulus measures buoy Aussie

AUD/USD chart on Trading View used for analysis

• AUD/USD resumes upside after a brief pause on Monday's trade, extends gains above 0.72 handle.
   
• Bulls test highs into the 0.7220 level, further upside likely to continue on bullish momentum.
   
• Fresh monetary and fiscal stimulus measures announced by China supports the antipodeans.
   
• AUD/USD is trading 0.17% higher on the day at 0415 GMT, eyes monthly highs at 0.7236.
   
• Momentum studies are bullish, but daily cloud is capping upside. Break above cloud base could see further gains.
   
• Scope then for test of 0.7330 (nearly converged 200-DMA and trendline resistance). 
   
• Rejection at cloud with break below 21-EMA support could see resumption of weakness.

Support levels - 0.7196 (5-DMA), 0.7169 (55-EMA), 0.7147 (21-EMA)

Resistance levels - 0.7222 (110-EMA), 0.7330 (converged 200-DMA and trendline resistance), 0.7393 (Dec 3rd, 4th high)

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