FxWirePro: AUD/USD holds above 55-EMA support, breakout at channel top to see further gains

AUD/USD chart on Trading View used for analysis

• AUD/USD is trading 0.10% higher on the day at 0.7217 at the time of trading.
   
• The Aussie dollar largely muted after the RBA as expected kept interest rates unchanged at 1.5 percent for the 26th straight month.
   
• Further, the central bank revised higher the 2018 and 2019 GDP forecasts but reiterated that wage growth remains subdued.
   
• Major trend is bearish, but technical bias on daily charts remains slightly bullish. 
   
• The pair is holding support at 55-EMA from the pat few sessions. 5-DMA is sharply higher and we see rising volatility.
   
• Price action is grinding lower in sloping channel. Breakout at channel top could see further bullishness. 
   
• Focus on the U.S. midterm elections, Democrat victory in both houses could weaken the US dollar.

Support levels - 0.7185 (converged 55-EMA and 5-DMA), 0.7139 (21-EMA)

Resistance levels - 0.7245 (channel top), 0.7284 (110-EMA)

Recommendation: Watch out for channel breakout to go long.

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.