FxWirePro: AUD/USD slips lower with 'Shooting Star' on 4H chart, upbeat Q2 construction sector data fails to impress Aussie

Refer AUD/USD chart on Trading View

• AUD/USD pauses upside, likely to snap the four-day winning streak, trades 0.17% lower at the time of writing.
   
• A big beat on Australia Q2 construction data failed to impress Aussie bulls. Dismal China growth forecasts by Moody’s could hurt the Aussie dollar. 
   
• Aussie construction work done in the second quarter – a key component of GDP – came in at 1.6 percent, beating the forecast of 0.7 percent.
   
• Ratings agency Moody’s said it expects China’s economy to grow at 6.6 percent this year following a 6.9 percent growth in 2017.
   
• AUD/USD is technically on a major downward spiral. The major finds stiff resistance at 50-DMA at 0.7382.
   
• Break above could see upside till major trendline resistance at 0.7445. Break below 5-DMA could resume weakness.
   
• Focus on RBA Deputy Governor Debelle's speech to the Economic Society of Australia (QLD.

Support levels - 0.7348 (21-EMA), 0.7326 (5-DMA), 0.73

Resistance levels - 0.7383 (50-DMA), 0.7408 (55-EMA), 0.7422 (23.6% Fib)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-USD-extends-upside-for-4th-straight-session-breaks-above-21-EMA-bias-higher-1418283) has almost hit TP1.

Recommendation: Book partial profits. Watch for break above 50-DMA for further upside.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 37.7551 (Neutral), while Hourly USD Spot Index was at -113.425 (Bearish) at 0515 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.