FxWirePro: AUD/USD breakout of Symmetric Triangle pattern raises scope for further upside, stay long

• AUD/USD hits 28-month high at 0.8116 before paring some gains to currently trade around the 0.81 handle.
   
• Upbeat home loans data from Australia remained supportive of the strong bid tone surrounding the Aussie.
   
• Australia July home loans came-in at 2.9% m/m, beating estimates for a rise to 1.0% and compared to the previous month’s figure of 0.5%.
   
• The greenback was already moving with a bearish bias after US jobless claims reports that showed a sharp increase to the highest since 2015.
   
• AUD/USD has shown a breakout of 'Symmetric Triangle' pattern. We see scope for further upside.
   
• Momentum indicators are highly bullish. Pair is on track to test 38.2% Fib retrace of 1.1080 to 0.6827 fall at 0.8451.
   
• Focus now shifts to a scheduled speech by RBA Assistant Governor Debelle, while markets ignore China trade balance which came in at $41.99B below forecasts ($48.6B) in August.

Support levels - 0.81, 0.8070 (trendline), 0.8020 (5-DMA), 0.7962 (weekly 200-SMA), 0.7940 (20-DMA)

Resistance levels - 0.8163 (May 2015 high), 0.8295 (Jan 2015 high), 0.8451 (38.2% Fib retrace of 1.1080 to 0.6827 fall)

Recommendation: Good to go long on dips around 0.81, SL: 0.8020, TP: 0.8160/ 0.82/ 0.8290

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 45.9702 (Neutral), while Hourly USD Spot Index was at -103.938 (Bearish) at 0500 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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