FxWirePro: AUD/USD retraces from 2-week highs at 0.7448 on Australia CPI miss, bias neutral

• AUD/USD has erased gains on the day, trades 0.27% in the red after Australia CPI miss.
   
• Data released earlier today showed Australia headline CPI for Q2 came in at 0.4% q/q, below the expected 0.5% and remaining steady with the previous reading.
   
• The Reserve Bank of Australia's (RBA) Trimmed Mean CPI came in at expectations, remaining in-line with the previous figure of 0.5%. 
   
• Data has erased RBA’s near-term rate hike hopes denting the antipodean.
   
• Intraday bias for the pair is neutral. Immediate support is seen at 5-DMA at 0.7394. Break below could see further weakness.
   
• On the upside, breakout at 21-EMA finds next major resistance at 55-EMA at 0.7472.
   
• Price action has held trendline support and we see bullish divergence on CCI, RSI and Stochs which keeps scope for upside.
   
• Break above 55-EMA raises scope for test of major resistance at 0.7545 (falling trendline). Further gains only on break above. 

Support levels - 0.7393 (5-DMA), 0.7325 (trendline), 0.73

Resistance levels - 0.7472 (55-EMA), 0.7483 (July 9,10 high), 0.7545 (trendline)

Recommendation: Good to go long on break above 55-EMA, SL: 0.7410, TP: 0.75/ 0.7545

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -66.0661 (Neutral), while Hourly USD Spot Index was at -79.1741 (Neutral) at 0400 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.