- AUD/USD stages modest recovery from previous session's slump, bias remains lower.
- The pair has edged higher from 3-week lows at 0.7371, as Aussie bulls, found some respite from today's release of New Home Sales data.
- Australia's Housing Industry Association reported a 0.8% m/m rise in new homes sales, posting a strong rebound from 1.1% fall seen in March.
- Upside capped shy of 0.74 handle, break above could see extension of gains upto 0.7420 (20-DMA).
- On the flipside, the pair is holding major trendline support at 0.7370, break below will see drag upto 0.7286 (78.6% Fib).
Support levels - 0.7370 (trendline), 0.7328 (May 9 low), 0.7286 (78.6% Fibo 0.71599 to 0.7749 rise)
Resistance levels - 0.74, 0.7422 (20-DMA), 0.7454 (50% Fib)
Recommendation: Good to go short on break below 0.7370, SL: 0.7425, TP: 0.7330/ 0.7290/
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -64.0087 (Neutral), while Hourly USD Spot Index was at -4.29927 (Neutral) at 0730 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
