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AUD/USD hovers around 0.76 handle, edges lower from session highs at 0.7621.

Rising December Fed rate hike bets and devaluation of Yuan by PBOC weighing on AUD/USD. SDR inclusion has not helped strengthen the yuan, PBOC has been weakening the currency via lower daily fix. Technical indicators sup…

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AUD/USD hovers around 0.76 handle, edges lower from session highs at 0.7621.
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  • Rising December Fed rate hike bets and devaluation of Yuan by PBOC weighing on AUD/USD.
     
  • SDR inclusion has not helped strengthen the yuan, PBOC has been weakening the currency via lower daily fix.
     
  • Technical indicators support upside in the pair, though some consolidation likely at 0.76 before next leg higher.
     
  • We see strong support by trendline at 0.7520, weakness only on break below.
     
  • Violation at 0.7520 could see test of 0.75 and then 0.7443 (200-DMA).
     
  • On the flipside, decisive break above 20-DMA at 0.7614 could see gains upto 0.77 (trendline resistance). 
     
  • Break above 0.77 could accentuate bullish bias, we then see scope for test of 0.7835.
     
  • Major support levels - 0.7576 (5-DMA), 0.7541 (100-DMA), 0.7520 (trendline), 0.7443 (200-DMA)
     
  • Major resistance levels - 0.7604 (50-DMA), 0.7614 (20-DMA), 0.77 (trendline), 0.7760 (Aug 11 high)
    ​

Recommendation: Good to go long on close above 20-DMA at 0.7614, SL: 0.7540, TP: 0.77/ 0.7760
 

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