FxWirePro: AUD/USD struggles at 20-DMA, bullish divergence keeps scope for upside

• AUD/USD slips lower after being rejected at 20-DMA currently at 0.7630.
   
• The pair is extending downside for 2nd consecutive session, down 0.08% on the day.
   
• Consolidation seen after FOMC minutes led spike, breakout at 20-DMA could see test of 0.7758 (38.2% Fib retrace of 0.8125 to 0.7532 fall).
   
• Technical studies are indecisive, RSI and Stochs are flat-lined. But MACD is showing a bullish crossover on signal line.
   
• However, bullish divergence on RSI and Stochs keeps scope for upside in the pair.
   
• Close below 5-DMA at 0.7606 to see weakness upto 0.7535 levels. Violation there could accentuate weakness.

Support levels - 0.7606 (5-DMA), 0.7535 (double bottom June 22 and Nov 17), 0.7528 (61.8% Fib retrace of 0.7160 to 0.81250 rally)

Resistance levels - 0.7630 (20-DMA), 0.7694 (200-DMA), 0.7758 (38.2% Fib retrace of 0.81250 to 0.75320 fall)

Recommendation: Watch out for break above 0.7630 to go long, SL: 0.7585, TP: 0.7695/ 0.7750

On the flipside, go short on close below 5-DMA at 0.7606, SL: 0.7640, TP: 0.7535.

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