- Aussie finds some support from mostly resilient commodity prices and dovish RBA largely priced in by markets.
- The pair has edged higher from a brief dip below 200-DMA at 0.7551.
- However, bulls struggling to build on tepid recovery move, pair finds stiff resistance at 5-DMA (0.7602).
- Violation at 200-DMA could see further downside, test of 0.7524 (38.2% Fib) and then 0.7491 (March 9 lows) then likely.
Support levels - 0.7551 (200-DMA), 0.7524 (38.2% Fib retrace of 0.7160 to 0.7749 rally), 0.7514 (100-DMA)
Resistance levels - 0.7610 (23.6% Fib), 0.7631 (50-DMA), 0.7679 (Mar 30 high), 0.7710 (Sept 29, 2016 high)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-hovers-around-076-handle-bias-lower-stay-short-621952) has hit TP1.
Recommendation: Book partial profits at lows, lower trailing stops to 0.76, hold for downside.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -27.2901 (Neutral), while Hourly USD Spot Index was at 75.846 (Bullish) at 0650 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
