- AUD/USD extends choppy trade into 3rd consecutive week. Bias neutral.
- The pair has failed to break above 200-DMA which is major resistance at 0.7697.
- Bullish divergence keeps scope for upside. Breakout above 200-DMA could see resumption of upside.
- The pair finds strong trendline support at 0.7635, break below to see weakness.
- Next major support below 0.7635 lies at 0.75, while above 200-DMA next major resistance aligns at 0.7719 (20-DMA).
- Focus this week shall be on US CPI, retail sales and industrial production, which could provide further direction.
- Also several speeches by FOMC members, including Janet Yellen, who is due to speak on Tuesday will be watched for clues.
Support levels - 0.7635 (trendline), 0.7625 (Oct 27 low), 0.7571 (July 5 low), 0.75 (78.6% Fib retrace of 0.7328 to 0.8125 rally)
Resistance levels - 0.7662 (5-DMA), 0.7697 (200-DMA), 0.7726 (50% Fib retrace of 0.7328 to 0.8125 rally), 0.7729 (20-DMA)
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