- Aussie buoyed on strong China imports data, on track to retake 0.77 handle.
- Data today showed China June imports in USD terms rose at an annualised rate of 17.2%, beating the estimated rise of 14.5%.
- Technical indicators on daily charts are bullish, RSI and Stochs are biased higher.
- We see scope for test of trendline resistance at 0.7710. Bullish invalidation on close below 5-DMA at 0.7644.
- US data which includes monthly PPI and weekly jobless claims release along with day 2 of Yellen testimony will drive price action.
Support levels - 0.7659 (78.6% Fib of 0.7749 to 0.7328 fall), 0.7644 (5-DMA), 0.7614 (20-DMA)
Resistance levels - 0.77 (88.6% Fib), 0.7710 (trendline), 0.7749 (Mar 21 high)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-holds-20-DMA-support-bias-higher-good-to-go-long-on-dips-795926) has hit TP1 and is just shy of TP2 at 0.77.
Recommendation: Book partial profits at high, trail stop loss to 0.7645, hold for upside.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 88.1274 (Slightly bullish), while Hourly USD Spot Index was at -100.591 (Bearish) at 0520 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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