FxWirePro: AUD/USD recovery capped at 5-DMA, break below 0.7340 to accentuate weakness

• AUD/USD recovery attempts were capped at 5-DMA, bias remains lower.
   
• The pair is extending weakness for a 3rd straight session, trades 0.23% lower on the day.
   
• Technical indicators support weakness in the pair. Momentum highly bearish, RSI well below 50 levels.
   
• We see -ve DMI dominance and ADX is rising above 25 levels which supports trend lower.
   
• The major finds strong trendline support at 0.7340, break below will accentuate weakness.
   
• On the flipside, break above 5-DMA could see test of 21-EMA at 0.7472. Bearish invalidation only on breakout above.

Support levels - 0.7327 (61.8% Fib retrace of 0.6827 to 0.8135 rally), 0.73, 0.7160 (Dec 2016 lows)

Resistance levels - 0.7408 (nearly converged 5-DMA and 1H 200-SMA), 0.7483 (1W 5-SMA)

Recommendation: Good to go short on rallies around 0.07380/85, SL: 0.7410, TP: 0.7340/ 0.73

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -57.2217 (Neutral), while Hourly USD Spot Index was at 109.919 (Bullish) at 0550 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.