- Aussie is trying to extend last week's recovery, AUD/USD trades 0.19% higher on the day at 0.7556 levels.
- The pair is struggling at 21-EMA at 0.7571 and decisive break above could see further upside.
- Focus on employment data and the Reserve Bank of Australia meeting minutes for further impetus.
- US dollar gives back some ground across the board on a softer-than-expected US inflation figures triggered pullback.
- Technical studies are turning higher from oversold levels. MACD has shown a decisive crossover on signal line.
- However, RSI partially losing upward strength, indicating that clearer signs are needed before calling for an upward extension.
- A decisive breakout above 21-EMA with RSI rising above 50 would be confirmation for further gains.
- Next target for bulls lies at 0.7662 (55-EMA) ahead of 0.7716 (converged trendline and 110-EMA).
- On the flipside 5-DMA is immediate support at 0.7507. Break below will see drag lower.
Support levels - 0.7507 (5-DMA), 0.7412 (May 9 low)
Resistance levels - 0.7571 (21-EMA), 0.76, 0.7662 (55-EMA)
Recommendation: Watch out for decisive break above 21-EMA to go long. Target 0.76/ 0.7660
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 89.2687 (Bullish), while Hourly USD Spot Index was at -98.9195 (Bearish) at 0400 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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