- AUD/USD edges lower from major trendline resistance at 0.7745.
- The pair has broken below 5-DMA support at 0.7689 and is currently trading at 0.7691.
- Bearish RSI divergence raises scope for downside in the pair.
- Downside finds strong support by 20-DMA at 0.7661. We see reversal in trend only on break below. Test of 100-DMA at 0.7512 then likely.
- On the flipside, breakout above trendline resistance at 0.7745 could see test of 0.7778 (Nov 8 high).
- Focus now on Trump's speech scheduled Tuesday which is likely to be big on rhetoric and short on substance.
Support levels - 0.7661 (20-DMA), 0.7603 (23.6% Fib retrace of 0.7161 to 0.7740 rally), 0.7550 (Feb 1st low)
Resistance levels - 0.7690 (5-DMA), 0.77, 0.7745 (Trendline), 0.7778 (Nov 8 high)
TIME TREND INDEX OB/OS INDEX
1H Bullish Neutral
4H Bullish Neutral
1D Neutral Neutral
1W Bullish Neutral
Recommendation: Good to go short on break below 20-DMA, SL: 0.77, TP: 0.76/ 0.7550.


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