- AUD/USD has been rejected at highs around 0.7508 on Thursday's trade.
- Aussie ignores better-than-expected Chinese CPI report, broadly stronger greenback weighs.
- The pair is just holding above 20-DMA support at 0.7443, break below will accentuate weakness.
- On the hourly charts we see strong resistance at 0.7458 which is converged 100-SMA and trendline.
- RSI on hourlies flatlined below 50 levels, though Stochs still show some upside in the pair.
- Support levels - 0.7454 (1H 5-SMA), 0.7443 (20-DMA), 0.7421 (23.6% Fib)
- Resistance levels - 0.7458 (1H 100-SMA and trendline). 0.7467 (5-DMA), 0.7489 (38.2% Fib), 0.75
Recommendation: Good to go short at current levels (0.7458), SL: 0.75, TP: 0.7440/ 0.7420/ 0.74
Bearish invalidation on decisive breakout above 0.7458, bulls can then test 0.7489 levels.
FxWirePro's Hourly EUR Spot Index was at 57.8352 (Neutral), while Hourly AUD Spot Index was at 46.1537 (Neutral) at 1300 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
