FxWirePro: AUD/USD breaks above 20-DMA, intraday bias higher, stay long
Tuesday, October 18, 2016 4:33 AM UTC
- AUD/USD hits fresh two-week highs at 0.7675, on track to test 0.77 levels.
- Aussie extends gains as markets digest the latest RBA meeting minutes and Governor Lowe’s comments.
- Minutes suggested that the RBA may remain in a wait and see mode in the upcoming meetings. RBA’s Lowe noted that the current AUD level is suitable for the economic growth.
- On the daily charts, the pair has broken above 20-DMA at 0.7622. Intraday bias higher.
- Next major resistance aligns at 0.77 (trendline), break above will see further upside.
- Major support levels - 0.7622 (20-DMA), 0.76, 0.7598 (10-DMA), 0.7581 (Oct 17 low)
- Major resistance levels - 0.77 (trendline), 0.7760 (Aug 11 high), 0.78, 0.7835 (Apr 21 high)
- Focus now remains on the US CPI and Chinese GDP data in the upcoming sessions for clues on further direction.
- Our previous call (http://www.econotimes.com/AUD-USD-hovers-around-076-handle-edges-lower-from-session-highs-at-07621-350374) is progressing.
- Recommend holding for targets.