- AUD/USD is extending declines from 2-year highs at 0.7987, bias is neutral for now.
- Momentum indicators are at overbought levels and are showing a turn lower.
- Further the occurrence of a long-legged Doji at highs suggests possible correction.
- Rollover of RSI and Stochs from ovebought levels will confirm bearishness.
- The pair has currently retraced dip below 5-DMA support at 0.7909 and is currently trading at 0.7922.
- Close below 5-DMA with RSI and Stoch rollover will likely see drag upto 20-DMA at 0.7712.
- Bearish invalidation on breakout above 0.80, 0.8163 then next bull target.
Support levels - 0.7909 (5-DMA), 0.0.7792 (23.6% Fib retrace of 0.71599 to 0.79878 rally), 0.7712 (20-DMA)
Resistance levels - 0.7987 (July 20 high), 0.80, 0.8163 (May 2015 high)
Recommendation: We prefer to wait for clear directional bias.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 0.547473 (Neutral), while Hourly USD Spot Index was at -46.3598 (Neutral) at 1240 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
