FxWirePro: AUD/USD capped below 50-DMA, break below 0.73 handle to see further weakness
AUD/USD trades 0.16% lower on the day at 0.7311 at the time of writing. Upside in the pair remains capped at 50-DMA at 0.7373, any upside only on break above. Australia's new Prime Minister lifted the political uncertain…
AUD/USD trades 0.16% lower on the day at 0.7311 at the time of writing.
Upside in the pair remains capped at 50-DMA at 0.7373, any upside only on break above.
Australia's new Prime Minister lifted the political uncertainty and prevented the Australian dollar from falling to fresh yearly lows.
Relief rally was short-lived. We see scope for test of 0.72 levels (nearly converged trendline and Aug 15 low).
Major trend remains bearish and the major is struggling at 21-EMA resistance.
That said, we evidence bullish divergence on RSI and Stochs which keeps scope for upside.
Support levels - 0.7335 (21-EMA), 0.7373 (50-DMA)
Resistance levels - 0.73, 0.7202 (Aug 15 low)
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 52.0166 (Neutral), while Hourly USD Spot Index was at -17.3374 (Neutral) at 1045 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
