- AUD/USD is struggling to extend gains beyond 23.6% Fib retrace of 0.7749 to 0.7328 fall.
- The pair is holding 5-DMA support at 0.7405, we see weakness only on break below.
- We have seen a 'Bullish Bat Pattern' formation on daily charts, scope for further upside.
- Broad-based USD weakness on US political disarray and increased doubts over Trump’s ability to deliver on his campaign promises likely to keep upside intact.
- Earlier today, S&P affirmed Australia's AAA rating, but cautioned that it could cut sovereign rating if loses confidence in surplus outlook.
- Australia's wage price index came in line with expectations, showed Australian wages rising but at their slowest pace on record.
Support levels - 0.7407 (5-DMA), 0.7345 (trendline), 0.7329 (May 9 low)
Resistance levels - 0.7451 (20-DMA), 0.7490 (38.2% Fib and trendline), 0.75
Call update: http://www.econotimes.com/FxWirePro-AUD-USD-forms-Bullish-Bat-Pattern-good-to-go-long-on-dips-700271) has hit TP1.
Recommendation: Bias higher, stay long.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 53.1586 (Neutral), while Hourly USD Spot Index was at -65.213 (Neutral) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
