FxWirePro: AUD/USD retraces brief dip below 5-DMA at 0.7811, eyes 200W SMA at 0.7856

• AUD/USD stalled corrective slide near 0.78 handle, edges higher to currently trade at 0.7833 level.
   
• The pair retraced brief dip below daily cloud and 5-DMA, bias higher as long as cloud support holds.
   
• Strong bullish momentum likely to keep scope for further upside. Momentum studies on weekly charts are also bullish.
   
• Price action has broken above weekly 20 SMA at 0.7773 which is now strong support.
   
• Next major bull target lies at 0.7856 200W SMA. Violation there eyes 61.8% Fib retracement at 0.7886.
   
• On the downside, 100-DMA at 0.7777 is strong support and we see weakness till 200-DMA at 0.7697 on break below. Violation at 200-DMA invalidates bullish bias.
   
• Focus on U.S. ISM manufacturing PMI and December FOMC meeting minutes, due later in the day for further impetus.

Support levels - 0.7817 (cloud base), 0.7812 (5-DMA), 0.7773 (20W SMA), 0.7697 (200 DMA)

Resistance levels - 0.7856 (200W SMA), 0.7875 (Oct 4 high), 0.7886 (61.8% Fib retrace of 0.81250 to 0.75012 fall)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-USD-holds-breaks-above-100-DMA-at-07778-weakness-only-on-retrace-below-1076221) has almost hit all targets.

Recommendation: Watch out for breakout at 200W SMA for further upside.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 70.8325 (Neutral), while Hourly USD Spot Index was at -116.886 (Bearish) at 0900 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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