FxWirePro: AUD/USD finds stiff resistance at 0.75, further upside only on break above

Technical Analysis:

• AUD/USD retraces from 0.75 handle, is struggling to extend gains beyond.
• 0.75 is major resistance level - psychological and converged 100 and 200 day MAs.
• Only decisive break above could see further gains. 
• Technical studies support upside, ADX biased north, Bollinger Bands are widening.
• Momentum studies are bullish, strength in RSI at 65 levels with room for further upside.
• Break above 0.75 could see test of 61.8% Fib of 0.7778 to 0.7160 fall at 0.7542.
• On weekly charts, we see Stochs have rolled over from oversold levels and biased higher.

Fundamental Factors:

• Chinese banks extended 1.04 trillion yuan ($A201 billion) in net new yuan loans in Dec, beating analysts' forecasts for a fall to 700 billion yuan.
• For the year 2016, China's banks extended a record 12.56 trillion yuan ($1.82 trillion) of loans.
• In the near term this will continue to boost growth in China and support appetite for commodities.
• Fed focus is on low unemployment while keeping inflation low and stable, Yellen said at a meeting overnight.
• The Fed chair made no comments regarding the economic or policy outlook in her speech at a 'town hall' meeting.

TIME  TREND    OB/OS INDEX    

1H    Bearish        Neutral    
4H    Bullish         Overbought        
1D    Bullish         Neutral        
1W   Neutral         Neutral      

Support levels - 0.7469 (50% Fib of 0.7778 to 0.7160 fall), 0.7429 (Jan 12 low), 0.74, 0.7394 (50-DMA)

Resistance levels - 0.75 (converged 100 & 200-DMA), 0.7542 (61.8% Fib), 0.7570 (Nov 16 high)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-spikes-past-50-DMA-momentum-bullish-stay-long-485038) has achieved TP1&2.

Recommendation: Book partial profits at highs. Stay long for further upside on break of 100-DMA.