FxWirePro: AUD/USD holds break above major trendline resistance at 0.7470, eyes 200-DMA at 0.7538

• AUD/USD edged off lows near 0.7442 and extended rally post the FOMC minutes overnight.
   
• The US yields and greenback were hit broadly by a dovish and cautious tone reflected by the FOMC in its minutes released late-Tuesday.
   
• The pair is currently consolidating previous session gains, is trading largely muted at 0.75 handle.
   
• The pace of construction work done in Australia during the March quarter of 2017 came in sharply below expectations and is likely to weigh on Q1 GDP.
   
• Also, ratings agency Moody’s has downgraded China’s long-term local currency and foreign currency issuer ratings to A1 from Aa3 and changed the outlook to Stable from Negative.
   
• All the above factors are negative for the Aussie and are likely to keep upside limited.
   
• Break below 20-DMA could see downside. Scope then for test of 0.7355 levels.

Support levels - 0.7432 (20-DMA), 0.7428 (23.6% Fibo 0.7749 to 0.7329 fall), 0.7355 (trendline)

Resistance levels - 0.7454 (5-DMA), 0.75 (psychological level), 0.7540 (200-DMA), 0.7588 (61.8% Fib)

Call update: We had advised a long in our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-pauses-upside-at-075-handle-bias-higher-good-to-go-long-on-dips-716936).

Recommendation: Hold for targets.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 87.7875 (Bearish), while Hourly USD Spot Index was at -106.887 (Bearish) at 0640 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.