FxWirePro: AUD/USD tests 55-EMA, Aussie ignores poor building permits data

AUD/USD chart on Trading View used for analysis

• AUD/USD resumes upside, tests 55-EMA resistance at 0.7164, hits 3-week highs at 0.7171.
   
• Aussie remains bid amid risk-on action in Asian equities, largely ignores poor building permits data.
   
• Data released earlier today showed Australian building permits weakened once again, falling -9.1% on Wednesday from 15.0 in the previous month and worse than forecast of 2.9%. 
   
• The pair has resumed upside after a brief pause on Tuesday's trade, up 0.25% at 0415 GMT.
   
• Break above stiff resistance at 55-EMA finds next major hurdle at daily cloud.
   
• Long-term bias is bearish. But hammer formation on the weekly candle has rasied scope for upside.
   
• Break above daily cloud will see 0.7335 (trendline resistance). Retrace below 21-EMA will see further weakness. 

Support levels - 0.7120 (21-EMA),  0.7113 (5-DMA), 0.7021 (Oct 26 low)

Resistance levels - 0.7164 (55-EMA), 0.7183 (cloud base),  0.7224 (110-EMA)

Recommendation: Watch out for break above daily cloud to go long

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