Chart - Courtesy Trading View
AUD/USD was trading 0.31% higher on the day at 0.6897 at around 04:25 GMT, breaks above 110-EMA.
The antipodeans buoyed by China stimulus hopes. The People’s Bank of China (PBoC) held its key mortgage rates at historic lows for 6th month.
China's one-year loan prime rate (LPR) was kept at 3.65%, while the five-year LPR was unchanged at 4.30%.
Despite the recovering momentum, some analysts expect rates will ease after China's annual parliamentary gathering in March, when the government announces key growth targets for the year.
The pair has bounced off 200-DMA and daily cloud with a Dragonfly Doji formation, raising scope for further upside in the pair.
Price action has broken above 110-EMA and is testing 5-DMA resistance at 0.6907, break above will see more gains.
Major Support Levels:
S1: 0.6879 (55-EMA)
S2: 0.6826 (110-EMA)
Major Resistance Levels:
R1: 0.6907 (5-DMA)
R2: 0.6940 (21-EMA)
Summary: AUD/USD finds strong support at 200-DMA and daily cloud, any weakness only on break below. Watch out for break above 21-EMA for more gains.
