AUD/USD chart on Trading View used for analysis
- AUD/USD hovers around 0.72 handle, up 0.34% at 0445 GMT.
- The pair is extending gains for the 2nd straight session as selling pressure around the greenback remains unabated.
- However, poor China's industrial profits data is likely to keep cap on further gains.
- China's industrial profits drop 1.9% y/y in December, overall profits declining for the second straight month.
- For the full-year of 2018, industrial profits increased 10.3 percent on an annual basis to CNY 6.64 trillion, versus the 11.8% gain in the January-November period.
- Technical studies are not conclusive. The pair finds stiff resistance at daily cloud and 110-EMA.
- Decisive break above daily cloud will see further upside. Next major target lies at 200-DMA at 0.7303.
- 55-EMA is immediate support at 0.7165. Break below will see weakness till 0.7076 (Jan 25 low).
Support levels - 0.7165 (55-EMA), 0.7076 (Jan 25 low), 0.7014 (Lower BB)
Resistance levels - 0.7212 (nearly converged 110-EMA and daily cloud), 0.7267 (Upper BB), 0.7303 (200-DMA)
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
