Refer AUD/USD chart on Trading View
- AUD/USD is extending recovery for the 3rd straight session, long-term bias still bearish.
- The pair has bounced off Wedge base with a 'Dragonfly doji' formation.
- We also see bullish divergence on RSI and Stochs which cloud support further upside.
- Price is extending sideways grind along 1H 110-EMA resistance. Break above could see upside till 21-EMA.
- Price is currently holding above 5-DMA and break below will see test of Wedge base at 0.72. Violation at Wedge base to see resumption of weakness.
- Next major bear target lies at 0.7160 (Dec 2016 lows) ahead of 0.7145 (May 2016 low).
Support levels - 0.7255 (5-DMA), 0.72 (Wedge Base), 0.7160 (Dec 2016 low), 0.7145 (May 2016 low)
Resistance levels - 0.7273 (1H 110-EMA), 0.73, 0.7342 (21-EMA)
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 44.6943 (Neutral), while Hourly USD Spot Index was at 44.9221 (Neutral) at 0530 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
