FxWirePro: AUD/USD finds strong trendline support at 0.7685, bullish divergence raises scope for upside

• AUD/USD holds on to gains as we head into the European session, hovers around 5-DMA at 0.7711.
   
• The pair is holding above strong trendline support at 0.7685, we see weakness only on break below.
   
• Technical indicators are bearish, however, bullish divergence on RSI and Stochs raises scope for upside.
   
• Immediate resistance is seen at 20-DMA at 0.7775, break above could see further upside.
   
• Scope then for test of 200-DMA at 0.7806. Further upside only on break above.
   
• On the flipside, we see weakness only on break below major trendline support at 0.7685.
   
• Focus now on Fedspeaks from Quarles, Dudley and Mester for fresh policy insights which could influence price action.

Support levels - 0.7712 (5-DMA), 0.77, 0.7685 (trendline)

Resistance levels - 0.7775 (20-DMA), 0.7806 (200-DMA)

Recommendation: We prefer to wait for clear directional bias.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -92.2138 (Bearish), while Hourly USD Spot Index was at -86.3722 (Bearish) at 0530 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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