- AUD/USD struggles to extend gains above 0.76 handle, upside seems capped at 20-DMA.
- The pair is holding break above 200-DMA am=nd trendline resistance. A break above 20-DMA could see further upside.
- Aussie likely subdued by escalating geopolitical tensions, which tends to drive flows away from riskier / higher-yielding currencies.
- Dismal US CPI reading along with lower-than-expected US retail sales last Friday to keep downside cushioned.
- Today's upbeat Chinese economic data dump, should provide support to the Aussie.
- China's GDP growth, industrial growth, fixed asset investment and retail sales, all surpassed consensus estimates.
- Technical indicators are still biased higher. Stochs and RSI point north and MACD is on verge of a bullish crossover.
Support levels - 0.7555 (200-DMA), 0.7524 (38.2% Fib retrace of 0.7160 to 0.7749 rally), 0.7474 (April 11 low)
Resistance levels - 0.76, 0.7610 (23.6% Fib), 0.7621 (50-DMA), 0.7679(Mar 30 high)
TIME TREND INDEX OB/OS INDEX
1H Neutral Neutral
4H Neutral Neutral
1D Bullish Neutral
1W Bearish Neutral
Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-spikes-above-200-DMA-on-upbeat-China-trade-data-intraday-bias-higher-641904) is progressing well.
Recommendation: Watchout for break above 20-DMA for further upside. Bias higher. Hold for targets.
