- AUD/USD trades a narrow range in the Asian session, hovers around the 0.77 handle.
- 5-DMA at 0.7680 is strong support, weakness likely on break below.
- USD fails to benefit from upbeat data overnight, US dollar index slides again, falls to 1-week lows.
- Initial Jobless Claims clocked 239K 'a better than expected' figure against 245K consensus and slightly similar to 234K previous.
- Building Permits Change made an interesting statement at 4.6% from previously revised figure 1.3%.
- Markets dampened post Trump's presser where he announced that tax reforms would have to wait until a replacement of the Affordable Care Act.
- We see bearish RSI divergence on daily charts. Break below 5-DMA will confirm weakness.
Support levels - 0.7651 (5-DMA), 0.7633 (session low), 0.7601 (20-DMA)
Resistance levels - 0.7688 (Feb 10 high), 0.7708 (88.6% Fib retrace of 0.7778 to 0.7160 fall), 0.7765 (Apr 26,27 high)
TIME TREND INDEX OB/OS INDEX
1H Bullish Neutral
4H Bullish Neutral
1D Bullish Neutral
1W Bullish Neutral
Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-capped-below-major-trendline-resistance-at-07685-good-to-long-break-above-537684) has hit TP1.
Recommendation: Raise trailing stops to 0.7630. Hold for upside.
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -127.601 (Highly bearish), while Hourly AUD Spot Index was at 137.724 (Highly bullish) at 0245 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
