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FxWirePro: AUD/USD capped at 61.8% Fib, good to long breakout above

  • Bullish momentum in AUD/USD ran out of steam after ratings agencies fired warning shots about Australia’s fiscal health.
     
  • Aussie fails to benefit from resilience in iron ore and falling political uncertainty in Australia.
     
  • Iron ore prices remain steady as well in Asia above $55/tonne, while PM Turnbull declared victorious in election results.
     
  • The pair is trimming Friday’s gains, upside seems to be capped at 61.8% Fib of 0.7835 to 0.7145 fall.
     
  • Technically the pair is poised for further gains, breakout above 61.8% Fib to see upside resume.
     
  • Support on the downside is seen at 0.7516 (5-DMA), 0.75 and then 0.7490 (10-DMA).
     
  • Resistance is seen at 0.7572 (61.8% Fib of 0.7835 to 0.7145 fall), 0.7580 (Apr 8 high) and 0.7720.

Recommendation: Good to long breakout above 0.7572, SL: 0.7515, TP: 0.76/ 0.7650/ 0.77
 

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