- AUD/USD resumes upside after brief consolidation, extends stellar rally above 0.80 handle.
- US dollar on the back foot after Treasury Secretary Steve Mnuchin said that a weaker USD is good for the US.
- The major is testing fresh 4-month highs at 0.8091 as we write, bias is higher.
- A close above monthly 200-MA of 0.8060 will propel the pair higher, scope then for test 2017 highs at 0.8125.
- Strong performance of key commodities like gold and copper likely to keep the Aussie supported.
- Technical studies also support further upside in the pair. Price action extends in rising channel pattern.
- Next major resistance lies at 0.8125 (2017 highs) ahead of channel top at 0.8220 levels.
- Breakout at channel top along with close above 200M SMA could see fresh highs.
Support levels - 0.8061 (200M SMA), 0.8031 (5-DMA), 0.80
Resistance levels - 0.8125 (2017 high), 0.8166 (50% Fib retrace of 0.9505 to 0.6827 fall), 0.8220 (channel top)
Recommendation: Good to go long on dips around 0.8060, SL: 0.80, TP: 0.8125/ 0.8170/ 0.82
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -11.0022 (Neutral), while Hourly USD Spot Index was at -157.572 (Neutral) at 0330 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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