FxWirePro: AUD/USD holds 4H 20-SMA support, break below to see further drag

Fundamentals Factors:

• Weak Aussie labor market data released on Monday, however, Aussie largely unaffected.
• Australian government warned earlier today that the party for the miners may be over this year.
• Separate data showed Australia Building Permits (MoM) rose from previous -12.6% to 7% in November.
• US non-farm payrolls for Dec released last Friday, came in close to expectations, saw a solid jump in wages growth.
• Gains in Aussie surprising given broadly bid USD.

Technical Studies:

• AUD/USD has seen rejection at 4H 200-SMA.
• The pair is currently holding 4H 20-SMA support.
• Break below will see further drag.

Important Levels: 

• Support: 0.7305 (23.6% Fib), 0.7292 (4H 20-SMA), 0.7264 (20-DMA)
• Resistance: 0.7346 (4H 200-SMA), 0.7355 (channel top), 0.7396 (38.2% Fib) 

Call Update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-trade-idea-476612) has hit TP1 and has retraced from close to TP2.

Recommendation: Book partial profits at lows. Hold for downside.