AUD/USD chart - Trading View
Fundamental Overview:
Broad based US dollar weakness after Trump's softer rhetoric and upbeat China Caixin PMI buoy bulls in AUD/USD.
US President Trump was softer-than-anticipated in his announcement on measures on China.
While Trump withdrew Hong Kong's special status, he did not mention new tariffs or the end of phase one of the trade deal with China.
Data released early on Monday showed the broader China Caixin Manufacturing PMI has posted an impressive jump back into expansionary territory, at 50.7.
Technical Analysis:
AUD/USD spikes past 200-DMA to hit 3-month highs at 0.6742, outlook is bullish.
Minor and major trend as evidenced by GMMA Indicator are bullish. Volatility is rising. Momentum strongly bullish.
Price action is above cloud and Chikou span is rising. ADX is rising with positive DMI dominance.
Close above 200-DMA will raise scope for upside. Jump till 0.7031 (Dec 31st high) likely.
Failure to close above 200-DMA will see further sideways grind. Bullish invalidation only below 55-EMA (0.6470).
Major Support Levels: 0.6654 (200-DMA), 0.6547 (21-EMA), 0.6516 (110-EMA)
Major Resistance Levels: 0.6859 (88.6% Fib), 0.6983 (Weekly cloud), 0.7031 (Dec 31st 2019 high)
Guidance: Bias is strongly bullish. Good to go long on dips. Target 0.6850/ 0.70
