FxWirePro: AUD/USD bounces off 200-DMA, bias higher, good to go long on dips

• Broad-based US dollar weakness amid lower US Treasury yields supporting AUD/USD higher.
   
• Caution seen in the markets ahead of the key US CPI figures, which are likely to shape up the Fed’s rate hike outlook this year.
   
• AUD/USD has bounced off 200-DMA and is extending upside for 4th consecutive session.
   
• Technical indicators are turning bullish, RSI is biased higher and Stochs are showing a rollover from oversold levels.
   
• Price has broken above 1H 200-SMA at 0.7866 and has edged above major EMAs.
   
• We see scope for test of 2H 200-SMA at 0.7962, breakout there could see test of 0.80.
   
• On the flipside, we see weakness on break below 5-DMA at 0.7837. Retrace below 200-DMA could see bearish invalidation.

Recommendation: Good to go long on dips around 0.7860/70, SL: 0.78, TP: 0.79/ 0.7960/ 0.80

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