FxWirePro: AUD/USD extends sideways grind along 200-DMA resistance, outlook remains bullish

AUD/USD chart - Trading View 

AUD/USD upside gained traction after the US dollar index (DXY), slipped to the fresh low since March 30.

The major was extending previous session's recovery and was trading 0.37% higher on the day at 0.6660 at around 06:06 GMT.

Analysis of the GMMA indicator shows short-term moving averages have broken above long-term moving averages and the long-term moving averages have shown a constriction and shift higher.

Price action is above cloud, volatility is rising and momentum studies are bullish. The pair faces tough barrier at 200-DMA and break above 0.67 mark will propel prices higher. 

That said, overbought oscillators and bearish Stochastics divergence may hamper upside. Minor weakness cannot be ruled out.

Immediate support is at 5-DMA at 0.6620. Break below will see test of 21-EMA at 0.6528. Retrace below 55-EMA will see major weakness. 

Support levels - 0.6620 (5-DMA), 0.6528 (21-EMA), 0.6460 (55-EMA)

Resistance levels - 0.67 (55W EMA), 0.6859 (88.6% Fib), 0.6936 (110-EMA)

Guidance: Watch out for weekly close above 55W EMA at 0.67 for bullish continuation. Next major bull targets - 0.6859 (88.6% Fib), 0.6936 (110-EMA).