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FxWirePro: AUD/USD breaks major trendline resistance at 0.7625, good to go long on dips

AUD/USD is trading a narrow range, consolidating previous session's gains. Profit taking seen at highs as the pair reached close to the crucial 0.77 handle. Sentiment around the Aussie dented after poor Chinese manufactu…

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FxWirePro: AUD/USD breaks major trendline resistance at 0.7625, good to go long on dips
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  • AUD/USD is trading a narrow range, consolidating previous session's gains.
     
  • Profit taking seen at highs as the pair reached close to the crucial 0.77 handle.
     
  • Sentiment around the Aussie dented after poor Chinese manufacturing PMI data.
     
  • China's January 207 Caixin manufacturing PMI came at 51.0 vs 51.8 expected and 51.9 last.
     
  • Technical indicators are biased higher, we see scope for upside. We see resumption of downside only on close below 5-DMA.
     
  • Main risk event for today is the US labour market report, while focus also remains on RBA meet next week.
     
  • Support levels - 0.7630 (trendline), 0.7606 (5-DMA), 0.7540 (61.8% Fib retrace of 0.7778 to 0.7160 fall)
     
  • Resistance levels - 0.77, 0.7705 (88.6% Fib), 0.7734 (Oct 20 high), 0.7778 (Nov 8 high)
    ​

Recommendation: Good to go long on dips around 0.7640, SL: 0.76, TP: 0.7695/ 0.7730

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 146.669(Highly bullish), while Hourly USD Spot Index was at -2.37981 (Neutral) at 0435 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex. 
 

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