- AUD/USD fails to break stiff resistance at 20-DMA, breaks below 5-DMA support at 0.7609.
- Technical studies are bearish on intraday charts, RSI and Stochs have turned south.
- Close below 5-DMA has raised scope for downside till 0.7535 levels (double bottom June 22 and Nov 17).
- However, bullish divergence on RSI and Stochs keeps scope for upside in the pair.
- Only violation at major support at 0.7535 there could see further weakness.
- We see bearish invalidation on breakout at 20-DMA, scope then for test of 200-DMA at 0.7693.
Support levels - 5-DMA), 0.7535 (double bottom June 22 and Nov 17), 0.7528 (61.8% Fib retrace of 0.7160 to 0.81250 rally)
Resistance levels - 0.7630 (20-DMA), 0.7694 (200-DMA), 0.7758 (38.2% Fib retrace of 0.81250 to 0.75320 fall)
Recommendation: Good to go short on rallies around 0.7590/ 0.76, SL: 0.7640, TP: 0.7535, 0.75.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -38.4285 (Neutral), while Hourly USD Spot Index was at 81.8909 (Bullish) at 0500 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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