FxWirePro: AUD/USD retakes 0.74 handle, scope for upside on bullish divergence

• AUD/USD trades 0.55% higher on the day, breaks above 5-DMA at 0.7392.
   
• The pair has bounced off strong trendline support on Thursday's trade.
   
• We evidence a 'Spinning Top' formation at lows which raises scope for upside.
   
• Further we also find bullish divergence on Stochs which adds to the upside bias.
   
• Stochs are at oversold and on verge of rollover into neutral territory.
   
• Close above 5-DMA likely to target 21-EMA at 0.7498. Break above 21-EMA finds next major resistance at 23.6% Fib at 0.7532.
   
• On the flipside, failure to hold above 5-DMA could see test of trendline support at 0.7345. Violation there could see further weakness.

Support levels - 0.7394 (5-DMA), 0.7345 (trendline)

Resistance levels - 0.7498 (21-EMA), 0.7532 (23.6% Fib)

Recommendation: Watch for close above 5-DMA to go long, target 0.7490/ 0.7530

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 77.1791 (Neutral), while Hourly USD Spot Index was at -74.9742 (Neutral) at 0825 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.