- AUD/USD price action has dipped into daily cloud, extends downside after breach at 50-DMA.
- Technical studies are heavily bearish, scope for test of 100-DMA at 0.7744.
- The pair is extending downside for 3 successive week, bias still lower.
- Technical studies on weekly charts are bearish, RSI and Stochs have rolled over from overbought. MACD is on verge of bearish crossover on signal line.
- Next major support lies at cloud base at 0.7794 ahead of 100-DMA at 0.7744.
- On the flipside, 5-DMA at 0.7913 is immediate resistance, break above will see test of 50-DMA at 0.7946.
Support levels - 0.7807 (Aug 15 low), 0.7794 (cloud base), 0.7756 (38.2% Fib retrace of 0.71599 to 0.81250 rally), 0.7744 (100-DMA)
Resistance levels - 0.7897 (23.6% Fib), 0.7914 (5-DMA), 0.7946 (50-DMA)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-USD-struggles-at-channel-top-breaks-below-50-DMA-good-to-go-short-on-rallies-914047) has hit TP1&2.
Recommendation: Book partial profits at lows. Bias lower, stay short for further downside.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -106.078 (Bearish), while Hourly USD Spot Index was at 162.488 (Bullish) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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