- AUD/USD is struggling to extend gains beyond 0.76 handle, bias remains bullish.
- The pair is extending gains after it held above major support at 200-DMA at 0.7530 on 22nd June trade.
- Stronger China’s industrial profits data for May also added to the renewed bullish momentum in the major.
- Expectations that the Fed may continue to push forward with policy normalization as suggested by the Bank for International Settlements (BIS) could limit upside.
- The pair finds stiff resistance at 0.7620 (trendline), break above needed for further upside.
- Focus on RBA Assistant Governor Debelle’s speech due out in the European session for fresh light on the central bank's monetary policy approach going forward.
- Also, the US data followed by Fed Chair Yellen’s speech will impact further direction.
Support levels - 0.7568 (5-DMA), 0.7537 (20-DMA), 0.7532 (200-DMA)
Resistance levels - 0.7620 (Trendline), 0.7659 (78.6% Fib), 0.7680 (Mar 30 high)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-hovers-around-1H-200-SMA-at-07580-good-to-go-long-on-break-above-773533) is approaching TP1.
Recommendation: Book partial profits at highs. Watch out for break above 0.7620 for further upside.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 72.3783 (Neutral), while Hourly USD Spot Index was at -57.9965 (Neutral) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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