FxWirePro: AUD/USD shorts under pressure, breaks channel top resistance, 0.7280 in sight

AUD/USD firm as market winds down pre Christmas and holiday period, opens Thursday at 0.7234, trades 0.7226-60 in Asia; last 0.7246.
 

• The antipodeans are on track to post solid gains for the week due to a hunt for yield. Much of the strength came from heavy buying interest from real money accounts.
   
• AUD/USD shorts under pressure as RM buying this week, carry trade demand is still in play for some time.
   
• Australian two-year government bonds yield around 2 percent, well above the 0.5 percent of Canada or Britain or negative rates of Germany and Japan. New Zealand pays even more with two-year bond yields at 2.7 percent.
   
• On the Technical side, we see a bullish 5&10 DMA crossover, the pair has broken channel top resistance at 0.7220 in yesterday's trade, Stochs are in neutral territory and point north.
   
• The pair finds layers of resistance with 0.7250 as initial resistance, stronger barrier seen near 0.7280 levels, breaks above could target 0.7335 levels.
   
• Initial support lies at 0.7220, which is resistance turned support level, and further below 0.7214 (5 DMA) and 0.7204 (10 DMA) are good support for the pair.
   

Recommendation: Buy dips around 0.7230, SL: 0.7180, TP1: 0.7280, TP2: 0.73