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FxWirePro: AUD/USD holds cloud support, extends grind higher, stay long

  • 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.
     
  • Market Data
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