FxWirePro: AUD/USD breaks below 20-DMA support at 0.7425, bias lower, good to short rallies

• AUD/USD breaks below 20-DMA support at 0.7425, intraday bias lower.
   
• The pair is trading a downward channel and is extending downside after rejection at channel top.
   
• Downside is currently holding support at 61.8% Fib of 0.71599 to 0.77493 rally at 0.7385.
   
• Break below will see further drag, next immediate support lies at 0.7355 (trendline).
   
• Next in focus would be the US economic docket, featuring the release of ADP report, weekly jobless claims and ISM manufacturing PMI.
   
• Investors keenly await US monthly jobs report, due on Friday for further direction.
   
• Technical studies are bearish, RSI and stochs are biased lower.

Support levels - 0.7355 (trendline), 0.7328 (May 9 low), 0.7315 (trendline)

Resistance levels - 0.7425 (20-DMA), 0.7437 (5-DMA), 0.7455 (50% Fib)

Recommendation: Good to go short on rallies around 0.7420/30, SL: 0.7485, TP: 0.7355/ 0.7330.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -139.551 (Bearish), while Hourly USD Spot Index was at 11.5384 (Neutral) at 0900 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.