Technical Analysis:
- AUD/USD has spiked past major hurdle at 0.75 which was converged 100 & 200 DMAs.
- Momentum with the bulls, we see scope for test of 78.6% Fib at 0.7645.
- Minor weakness on intraday charts should be used as buying opportunities.
- Weakness only on close below 0.75 handle, test of 0.7469 (50% Fib) then likely.
- On the weekly charts, the pair trades above 100-MA at 0.7432.
- RSI and Stochs on weekly charts are biased higher and MACD is on verge of a bullish crossover.
Fundamental Factors:
- Aussie continues to gain support from solid Chinese bulk prices and the general correction in USD
- Data released earlier today showed Australia Westpac Consumer Confidence Index increased to 97.4 in January from previous 97.3
- US CPI release and Yellen speech will be in focus - as the unwinding of the Trump trade appears to have gathered pace.
TIME TREND INDEX OB/OS INDEX
1H Bearish Neutral
4H Neutral Neutral
1D Bullish Neutral
1W Bullish Neutral
Support levels - 0.7512 (5-DMA), 0.75 (1H 200-SMA, 100&200 DMA), 0.7465 (Jan 17 low), 0.74
Resistance levels - 0.7568 (Jan 17 high), 0.76, 0.7645 (78.6% Fib)
Call Update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-spikes-past-50-DMA-momentum-bullish-stay-long-485038) has achieved all targets.
Recommendation: Good to go long on dips around 0.7520, SL: 0.7470, TP: 0.7570/ 0.76/ 0.7645
