FxWirePro: AUD/USD finds stiff resistance at daily cloud, 'bullish divergence' keeps scope for upside

AUD/USD chart - Trading View 

AUD/USD was trading rangebound at 0.7164 at around 05:30 GMT, bias remains bullish.

The pair has erased most of the previous session's losses and closed 0.17% higher at 0.7174 on Wednesday's trade.

Data released earlier today showed Australia’s Trade surplus shrank to 5.63bn in September, more than 3.7bn expected.

Australia’s September month Trade Balance eased as the big -5.9% drop in Imports supersede +3.9% rise in Exports.

Technical indicators support some gains in the pair. Price action is above major EMAs and 'bullish divergence' on RSI supports upside.

Focus on US election updates along with the US Federal Reserve’s policy decision due at 1900 GMT. A cautious tone from the Fed could push the pair higher.

Stiff resistance is seen at daily cloud and 200W MA. Decisive break above will confirm further upside. Test of 0.74 levels likely.

Major Support - 0.7054 (110-EMA); Major Resistance - 0.7240 (200W MA)