FxWirePro: AUD/USD retraces break above weekly 200-SMA, bias neutral

• AUD/USD fails to hold break above weekly 200-SMA at 0.8008, slips lower to currently trade at 0.7952.
• Technicals on daily charts are turning. Bearish divergence seen on 4 hourly charts.
• The following could confirm further downside: - Close below 5-DMA - Rollover of RSI and Stochs from overbought levels.
• Next immediate support seen at 0.7902 (23.6% Fib retrace of 0.73728 to 0.80656 rally).
• On the flipside, weekly 200-SMA at 0.8008 is immediate resistance, bullish extension only on close above.

Support levels - 0.7902 (23.6% Fib retrace of 0.73728 to 0.80656 rally), 0.7902 (23.6% Fib retrace of 0.73712 to 0.79878 rally), 0.7792 (20-DMA)

Resistance levels - 0.8008 (weekly 200-SMA), 0.81, 0.8163 (May 2015 highs). 0.82

Recommendation: Watch out for close above weekly 200-SMA to go long.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -21.9173 (Neutral), while Hourly USD Spot Index was at -50.8706 (Neutral) at 1140 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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