FxWirePro: AUD/USD bounces off 0.72 support, good to buy dips

AUD/USD squeezed to a peak of 0.7297 late on Friday after China cut interest rates for the sixth time since November 2014.

• The Aussies was later subdued after a drop in crude oil prices weighed on commodity currencies
   
• The pair has bounced back on the day, nudged up 0.2 percent to 0.7245 after dipping to 0.7206 earlier
   
• Asian stocks extended their rally on Monday, after another rate cut in China fueled risk appetite 
   
• The PBOC lowered its benchmark interest rates by 25 basis points, alongside a half-percentage cut in the reserve requirement ratio (RRR), to jump-start a slowing economy
   
• AUD/USD is currently trading at 0.7264, with immediate resistance at 0.7273 (4h cloud base) and support at 0.72 (session low and cloud base)
   
• Rallies upto trendline resistance at 0.7288 likely, breaks above could take the pair to 0.7350 levels

Recommendation: Good to buy dips around 0.7230, SL: 0.7195, TP: 0.7285

Resistance Levels:

R1: 0.7272 (Daily Tenkan)

R2: 0.7273 (4h cloud base) 

R3: 0.7288 (trendline resistance)

Support Levels:

S1: 0.72 (session low and cloud base)

S2: 0.7165 (Oct 8 lows)

S3: 0.7158 (Daily kijun)