- AUD/USD has broken above 100-DMA resistance at 0.7778 and hit 0.78 handle.
- Strong bullish momentum keeps scope for further upside in the pair.
- Immediate resistance now lies at 0.7813 (nearly converged cloud top and 50% Fib retracement of 0.81250 to 0.75012 fall).
- Break above 0.7813 resistance then eyes 61.8% Fib retracement at 0.7886.
- On the downside, 200-DMA at 0.7693 is strong support and we see bullish invalidation on retrace below.
Support levels - 0.7778 (100-DMA), 0.7742 (5-DMA), 0.7693 (200 DMA)
Resistance levels - 0.7813 (50% Fib retracement of 0.81250 to 0.75012 fall), 0.7817 (cloud top), 0.7875 (Oct 4 high)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-consolidates-break-above-200-DMA-at-07692-bias-higher-stay-long-1073314) is approaching final targets.
Recommendation: Book partial profits, trail stop loss to 0.7778, hold for 0.7810/ 0.7850.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 116.229 (Bullish), while Hourly USD Spot Index was at -102.586 (Bearish) at 0730 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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