- AUD/USD holds above 5-DMA support, trades 0.43% higher on the day, bias higher.
- The Aussie buoyed by upbeat Chinese industrial output and fixed asset investment data.
- Further USD weakness after US inflation data disappointed bulls keeps upside supported.
- Technical studies are bullish. RSI is above 50 levels and biased higher. Stochs show bullish momentum.
- Price action currently finds strong resistance at 50-DMA at 0.7897, break above to see further upside.
- Scope then for test of 0.7988 (Feb 16 high) ahead of 0.8065 (July 27 high).
- On the flipside, breach below 20-DMA support at 0.7836 could see weakness till 200-DMA at 0.78. Violation at 200-DMA invalidates bullish bias.
Support levels - 0.7851 (5-DMA), 0.7836 (20-DMA), 0.78 (200-DMA)
Resistance levels - 0.7897 (50-DMA), 0.7986 (23.6% Fib), 0.8065 (July 27 high)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-USD-holds-above-200-DMA-Aussies-slightly-bid-on-upbeat-trade-data-1190751) has hit TP1.
Recommendation: Watch out for break above 50-DMA for further upside.
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