FxWirePro: AUD/USD pauses upside at 0.75 handle, outlook bullish

Chart - Courtesy Trading View 

Spot Analysis:

AUD/USD was trading 0.20% lower on the day at 0.7483 at around 05:50 GMT

Previous Week's High/ Low: 0.7417/ 0.7165

Previous Session's High/ Low: 0.7507/ 0.7450

Fundamental Overview:

Aussie takes a breather after modest PMI data from IHS Markit and Commonwealth Bank PMI report.

Australia Manufacturing and Services PMI printed at 57.3 and 57.9 against the previous print of 57 and 57.4 respectively.

The Markit Composite PMI has been recorded at 57.1 in comparison with the prior figure of 56.6.

News surrounding the Sino-American trade pact seems to have helped the market sentiment and cushioned downside in the pair.

Preliminary readings of the US PMIs and Durable Goods Orders and US President Joe Biden’s meeting with European counterparts from NATO will be in focus for impetus.

Technical Analysis:

- GMMA indicator shows major and minor trend are bullish

- Momentum is with the bulls, volatility is high

- Price action has tested weekly cloud top at 0.75

- MACD and ADX support upside in the pair

Major Support and Resistance Levels:

Support - 0.7452 (5-DMA), Resistance - 0.75 (Weekly cloud top) 

Summary: AUD/USD pivotal at weekly cloud top. Major trend is bullish, pullbacks are likely to be shallow. Watch out for break above daily cloud for upside continuation.