- AUD/USD is extending upside for the second straight session, bounces off strong trendline support.
- Broad-based US dollar weakness and better than expected China's Caixin services PMI for June which came in at 53.9 vs 52.7 expected supporting the pair.
- The major failed to extend weakness below 61.8% Fib at 0.7327, retraces above 5-DMA.
- Technical indicators on daily charts are slowly turning bullish. Stochs are on verge of rollover from oversold zone.
- Further, bullish divergence on RSI and Stochs keeps scope for upside in the pair.
- Upside finds immediate stiff resistance at 21-EMA at 0.7435, break above could see further gains.
- On the flipside, we see weakness to resume on break below major trendline support at 0.7315.
Support levels - 0.7376 (5-DMA), 0.7327 (61.8% Fib), 0.73
Resistance levels - 0.7435 (21-EMA), 0.7481 (50% Fib), 0.7503 (50-DMA)
Recommendation: Good to go long on breakout at 21-EMA, SL: 0.7375, TP: 0.7480/ 0.75/ 0.7520
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 15.4165 (Neutral), while Hourly USD Spot Index was at -108.558 (Bearish) at 0645 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
