FxWirePro: AUD/USD faces stiff resistance at 0.7625, good to go short on rallies

• AUD/USD trades well below 0.76 handle, breaks below 5-DMA, bias lower.
   
• The pair is extending  downside for a third consecutive day, drag till 20-DMA at 0.7513 now likely.
   
• Rising US Treasury yields, in response to the recent Fedspeaks dampens demand for high-yielding currencies like the Aussie.
   
• Also, cautious tone delivered by the RBA minutes and weakness seen around oil prices keeps upside capped.
   
• Technical indicators are mildly bearish, RSI and Stochs are biased lower and Stochs are on verge of a rollover from overbought levels.
   
• Focus on US existing home sales data and US crude stockpiles data for fresh impetus.
   
• Next immediate support lies at 0.7538 (50% Fib of 0.7749 to 0.7328 fall) ahead of 20-DMA at 0.7513.
   
• On the flipside, 5-DMA at 0.7588 offers immediate resistance, break above could see test of major trendline resistance at 0.7625.

Support levels - 0.7538 (50% Fib of 0.7749 to 0.7328 fall), 0.7513 (20-DMA), 0.75

Resistance levels - 0.7588 (5-DMA), 0.76, 0.7625 (trendline)

Recommendation: Good to go short on rallies around 0.7570/80, SL: 0.7625, TP: 0.7540/ 0.7515/ 0.75

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -82.5057 (Bearish), while Hourly USD Spot Index was at 94.7585 (Bullish) at 0345 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.