- AUD/USD is extending choppy trade below 200-DMA, bias still bearish.
- We have seen little impact on the pair from data this month, Aussie largely muted.
- Technical support weakness. RSI and Stochs biased lower. We see -ve DMI dominance.
- The major finds stiff resistance at 0.7785 (200-DMA), we see upside only on decisive break above.
- Focus now on the RBA this week and nonfarm payrolls which will dictate further direction.
- If bullish US economic narrative is maintained, AUD/USD should chop down lower.
- Bears eye 0.7637 (78.6% Fib retrace of 0.7501 to 0.8135 rally) ahead of 0.7570 (major trendline).
Support levels - 0.7743 (61.8% Fib retrace of 0.75012 to 0.81358 rally), 0.77, 0.7637 (78.6% Fib retrace of 0.75012 to 0.81358 rally), 0.7570 (trendline)
Resistance levels - 0.7763 (5-DMA), 0.7785 (200 DMA), 0.7818 (50% Fib), 0.7838 (20-DMA)
Recommendation: We prefer to wait for clear directional bias.
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