- AUD/USD pauses downside at daily cloud which is offering strong support at 0.7539 levels.
- Downside in the pair held above 200-DMA at 0.7530 on Thursday's trade.
- Moderate gains seen in the oil benchmarks, seen supporting the Aussie, could trigger short unwinding during the day ahead.
- Technical indicators are biased lower and we see scope for downside resumption on break below 200-DMA.
- Break below 200-DMA finds next immediate support at 0.7518 (38.2% Fib of 0.7328 to 0.7635 rally).
- Violation there could take the pair sharply lower, test of 61.8% Fib at 0.7448 then likely.
Support levels - 0.7539 (cloud top), 0.7530 (200-DMA), 0.7518 (38.2% Fib of 0.7328 to 0.7635 rally)
Resistance levels - 0.7563 (converged 5-DMA and 23.6% Fib), 0.76, 0.7625 (trendline)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-faces-stiff-resistance-at-07625-good-to-go-short-on-rallies-766697) has hit TP1. Bias lower.
Recommendation: Stay short for further downside.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -148.371 (Bearish), while Hourly USD Spot Index was at -111.054 (Bearish) at 0230 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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