FxWirePro: AUD/USD holds breaks above 100-DMA at 0.7778, weakness only on retrace below

• AUD/USD closed above 100-DMA at 0.7778 on Thursday's trade. We see weakness only on retrace below.
   
• The pair trades with a strong bullish momentum which keeps scope for further upside.
   
• Momentum studies on weekly charts are also bullish. Price action has broken above weekly 20 SMA.
   
• Next major bull target lies at 0.7862 200W SMA. Violation there eyes 61.8% Fib retracement at 0.7886.
   
• On the downside, 100-DMA at 0.7778 is strong support and we see weakness till 200-DMA at 0.7694 on break below.
   
• Violation at 200-DMA invalidates bullish bias.

Support levels - 0.7778 (converged 20W SMA and 100-DMA), 0.7761 (5-DMA), 0.7694 (200 DMA)

Resistance levels - 0.7813 (50% Fib retracement of 0.81250 to 0.75012 fall), 0.7817 (cloud top), 0.7875 (Oct 4 high)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-consolidates-break-above-200-DMA-at-07692-bias-higher-stay-long-1073314) is approaching final targets.

Recommendation: Book partial profits, trail stop loss to 0.7778, hold for 0.7810/ 0.7850.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 84.0255 (Bullish), while Hourly USD Spot Index was at -160.885 (Bearish) at 0630 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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