FxWirePro: AUD/USD holds cloud support, extends grind higher, stay long
Monday, August 1, 2016 6:06 AM UTC
- AUD/USD is extending grind higher supported by upbeat China Caxin and Australia's manufacturing sector data.
- Data released by the AiG showed Monday that Australia’s manufacturing sector continued to grow for the 13th straight month in a row in July.
- According to the survey, Australia’s Manufacturing Index surged to 56.4 in July, a level best seen since 2014.
- The pair has strong support by daily cloud, which it has held strongly, weakness only below.
- Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-finds-strong-cloud-support-intraday-bias-higher-241463) has achieved all targets.
- Upside in the pair finds immediate resistance at 0.7617 (June 23 high), break above could see upside upto 0.7676.
- Recommend booking partial profits and stay long. Weakness only below 20-DMA at 0.7533.
- Violation there could see test of cloud top at 0.75. Further weakness could see drag upto 0.7442 (July 22 low).
- Markets await the RBA policy decision due tomorrow for fresh direction on the pair, with the central bank expected to keep rates steady.