- AUD/USD has failed to close below 1W 200-SMA and we see scope for further upside if pair breaks out of daily cloud.
- Currently price action is struggling to break past daily cloud top at 0.7878.
- Technical indicators on daily charts are turning bullish. RSI and Stochs have turned north and we see +ve DMI dominance on 1H charts.
- Above daily cloud we find next major resistance at 20-DMA at 0.7896. Break out at 20-DMA could see further gains.
- On the flipside, we see weakness only on close below 1W 200-SMA currently at 0.7803.
- Light Aussie calendar with mid-tier data ahead. Focus will be on UST yields and Fed talk for further impetus.
Support levels - 0.7846 (5-DMA), 0.78, 0.7778 (200-DMA)
Resistance levels - 0.7878 (cloud top), 0.7881 (1H 200-SMA), 0.7896 (20-DMA)
Recommendation: Watch out for breakout at 20-DMA to go long. Target 0.7988/ 0.8035/ 0.81.
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