FxWirePro: AUD/USD breaks major trendline resistance at 0.7925, bias higher

• AUD/USD breaks major trendline resistance at 0.7925, scope for further upside. 
   
• The pair retraced dip below 23.6% Fib and spiked to fresh session tops near 0.7933 after disappointing US housing market data overnight. 
   
• U.S. housing starts tumbled to an annualized pace of 1.155 million units in July, down 4.8% from 1.215 million units in the previous month. 
   
• Further, Australia jobs data mixed in July. The economy added 27.9K jobs, beating the estimated figure of 20K. The June figure was revised higher to 20K from 14K.
   
• However, there was an unexpected drop of 20.3K in the full time jobs in July. The part time jobs registered a growth of 48.2K in July compared to the prior month’s drop of 48.0K.
   
• RBA is also talking down the Aussie, trying to discourage further gains in the exchange rate, which might limit gains.
   
• Stochs have rolled over from oversold levels and RSI is also biased higher.

Support levels - 0.7927 (20-DMA), 0.7892 (23.6% Fib retrace of 0.7328 to 0.8065 rise), 0.7885 (5-DMA)

Resistance levels - 0.7987 (July 20 high), 0.80, 0.8022 (Upper BB), 0.8065 (July 27 high)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-slips-below-236-Fib-eyes-50-DMA-at-07752-good-to-short-rallies-854978) has hit stop loss.

Recommendation: Good to go long on dips around 0.7930/40, SL: 0.7886, TP: 0.7990/ 0.80/ 0.8025 

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 109.549 (Bullish), while Hourly USD Spot Index was at -6.4494 (Neutral) at 0510 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex. 

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