FxWirePro: AUD/USD struggles at 200-DMA, break above to see further upside

• AUD/USD extends range trade below 0.77 handle, finds stiff resistance at 200-DMA at 0.7697.
   
• Markets will focus on the RBA Statement on Monetary Policy scheduled to be released on Friday at 00:30 GMT.
   
• The pair is extending choppy trade below 200-DMA and breakout above is needed for further upside.
   
• Better-than-expected China October PPI data supports the Aussie, AUD/USD up 0.06% on the day.
   
• China producer price index (PPI) came-in at 6.9 percent y/y, beating the estimated decline to 6.6 percent.
   
• Technical studies do not provide clear directional bias. Breakout above 200-DMA could see upside.
   
• The major finds strong trendline support at 0.7635, break below will accentuate weakness. 
   
• Focus today will also be on the US tax reforms, which is expected to have a significant impact on the USD price-action.

Support levels - 0.7666 (5-DMA), 0.7635 (trendline), 0.7625 (Oct 27 low), 0.7571 (July 5 low)

Resistance levels - 0.7697 (200-DMA), 0.7726 (50% Fib retrace of 0.7328 to 0.8125 rally), 0.7740 (20-DMA)

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest