- AUD/USD largely muted above 0.74 handle after bullish gap open in the Asian session today.
- Aussie is likely to be supported on bouncing commodity prices. Scope for further upside.
- The major finds strong trendline support at 0.7325, break below will accentuate weakness.
- Price action has held trendline support and edged higher, holds above 21-EMA at 0.7415.
- We see bullish divergence on RSI and Stochs which keeps scope for upside.
- We see strong resistance at 50-DMA at 0.7475. Break above could see further upside.
- Scope then for test of major resistance at 0.7545 (falling trendline). Further gains only on break above.
Support levels - 0.74, 0.7397 (5-DMA), 0.7325 (trendline)
Resistance levels - 0.7475 (50-DMA), 0.7483 (July 9,10 high), 0.7545 (trendline)
Recommendation: Good to go long on break above 50-DMA, SL: 0.74, TP: 0.75/ 0.7545
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -8.55886 (Neutral), while Hourly USD Spot Index was at -52.1654 (Neutral) at 0545 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
