FxWirePro: AUD/USD edges higher from fresh 3-week lows, growing prospects of RBA rate cut to keep upside limited

AUD/USD chart on Trading View used for analysis

• AUD/USD trades 0.17% higher on the day at 0.71 at 0700 GMT.
   
• The pair has edged higher from fresh 3-week lows at 0.7075.
   
• Technical studies do not support any concrete evidence of upside.
   
• Further, growing prospects of RBA rate cut to keep upside limited.
   
• 5-DMA is immediate resistance at 0.7122, while break above 110-EMA negates bearish bias.
   
• Major trend is bearish. Downside continuation to see test of 0.7021 (Oct 26 low).

Support levels - 0.71, 0.7021 (Oct 26 low), 0.70

Resistance levels - 0.7122 (5-DMA), 0.7128 (20-DMA), 0.7211 (110-EMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-USD-hits-3-week-lows-Aussie-offered-after-NABs-decision-to-hike-home-loan-rates-1488697) has hit TP1.

Recommendation: Book partial profits at lows. Hold for further weakness.

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.