- AUD/USD trades 0.34% higher on the day, Aussie buoyed by upbeat China Caxin PMI.
- The major is extending its bullish momentum from the last year, breaks above daily cloud.
- The pair has hit fresh 10-week highs at 0.7833, intraday bias remains higher.
- We see a strong bullish momentum which keeps scope for further upside. Momentum studies on weekly charts are also bullish.
- Price action has broken above weekly 20 SMA at 0.7773 which is now strong support.
- Next major bull target lies at 0.7856 200W SMA. Violation there eyes 61.8% Fib retracement at 0.7886.
- On the downside, 100-DMA at 0.7777 is strong support and we see weakness till 200-DMA at 0.7696 on break below. Violation at 200-DMA invalidates bullish bias.
Support levels - 0.7817 (cloud base), 0.7799 (5-DMA), 0.7773 (20W SMA), 0.7696 (200 DMA)
Resistance levels - 0.7856 (200W SMA), 0.7875 (Oct 4 high), 0.7886 (61.8% Fib retrace of 0.81250 to 0.75012 fall)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-USD-holds-breaks-above-100-DMA-at-07778-weakness-only-on-retrace-below-1076221) is approaching final targets.
Recommendation: Book partial profits at highs, hold for upside.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 170.326 (Bullish), while Hourly USD Spot Index was at -144.67 (Bearish) at 0430 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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