- Aussie buoyed on robust Westpac consumer sentiment index. Australia’s July consumer sentiment m/m increase to 0.4 % vs previous -1.8 %.
- AUD/USD up 0.27% on the day, currently trading at 0.7653, extending gains for 4 successive session.
- Technical indicators on daily charts have turned bullish, RSI and Stochs are biased higher.
- We see scope for test of trendline resistance at 0.7710. Bullish invalidation on close below 20-DMA at 0.7607.
- Focus will be on Yellen's testimony at the House Financial Services Committee for cues on further direction.
Support levels - 0.7617 (5-DMA), 0.7607 (20-DMA), 0.7588 (61.8% Fib of 0.7749 to 0.7328 fall)
Resistance levels - 0.77 (88.6% Fib), 0.7710 (trendline), 0.7749 (Mar 21 high)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-holds-20-DMA-support-bias-higher-good-to-go-long-on-dips-795926) has hit TP1.
Recommendation: Book partial profits at highs, raise trailing stops to 0.76, hold for upside.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 58.9178 (Neutral), while Hourly USD Spot Index was at -52.3749 (Neutral) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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