- Aussie jumps after the Australian Bureau of Statistics (ABS) reported a better-than-expected Australia first quarter GDP reading.
- The economy expanded 1 percent quarter-on-quarter in the first quarter, narrowly beating the estimate of 0.9 percent, but well above the previous quarter's growth rate of 0.4 percent.
- AUD/USD has broken above channel top and price action has entered into daily cloud.
- We see a bullish divergence from price action on Stochs which adds upside support.
- Upside has broken above 23.6% Fib and 50-DMA, next bull target lies at 38.2% Fib at 0.7688.
- On the downside, 21-EMA is strong support. We see weakness on break below.
Support levels - 0.7611 (5-DMA), 0.7604 (50-DMA), 0.7575 (21-EMA)
Resistance levels - 0.7688 (38.2% Fib), 0.77, 0.7733 (100-DMA)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-Bullish-engulfing-pattern-seen-on-AUD-USD-stay-long-on-break-above-236-Fib-at-07583-1341161) has hit TP1/2.
Recommendation: Hold for further upside.
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