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FxWirePro: AUD/USD capped at daily cloud, 'Bullish Divergence' keeps scope for upside

AUD/USD chart - Trading View AUD/USD extends volatile moves, 'Spinning Top' formation on the daily charts suggests indecision. The US dollar is gaining ground across the board as markets turn risk averse on increasing od…

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FxWirePro: AUD/USD capped at daily cloud, 'Bullish Divergence' keeps scope for upside
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AUD/USD chart - Trading View 

AUD/USD extends volatile moves, 'Spinning Top' formation on the daily charts suggests indecision.

The US dollar is gaining ground across the board as markets turn risk averse on increasing odds of a Republican victory.

Markets now likely price out the prospect of an easy win for Democratic presidential candidate Joe Biden and a bigger fiscal stimulus package that is expected to come with it.

Technical bias for the pair is neutral. The pair is ranging in the 0.70 to 0.7250 range since September. 'Bullish Divergence' keeps scope for upside.

Price action is above 200-DMA and decisive breakout at daily cloud will fuel further gains to 0.74 and beyond.

200-DMA is major support at 0.6804. Violation there will negate any upside bias. Scope then for dip till 61.8% Fib at 0.6234.

Major Support - 0.6804 (200-DMA), Major Resistance - 0.7193 (Daily cloud)
 

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