- Aussie supported by risk-on as US and N.Korea seek to proceed with the June Summit.
- Further broad-based USD selling across the board in the Asian session supporting the pair higher.
- AUD/USD edged higher on the day, trades 0.39% up at 0.7574 at the time of writing.
- The major is extending choppy trade along 21-EMA and we see bias higher.
- We evidence a bullish divergence on Stochs which raises scope for upside.
- The pair is currently struggling at 23.6% Fib at 0.7583, decisive breakout will see test of 50-DMA at 0.7621.
- On the downside, 20-DMA is strong support at 0.7524. Break below to see resumption of weakness.
- On the data front we have Australia building permits (Wed). In the US calendar focus on ADP employment, NFP and Q1 GDP, second estimate.
Support levels - 0.7556 (21-EMA), 0.7524 (20-DMA), 0.75
Resistance levels - 0.76, 0.7625 (55-EMA), 0.7688 (converged 110-EMA & 38.2% Fib)
Recommendation: Good to go long on decisive break above 23.6% Fib, SL: 0.7525, TP: 0.7625/ 0.7685/ 0.77
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 75.3252 (Neutral), while Hourly USD Spot Index was at -101.709 (Bearish) at 0545 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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