- AUD/USD extends gains above 0.78 handle, trades 0.11% higher on the day at around 0.7843 at the time of writing.
- The pair has tested stiff resistance at 0.7856 which is 200W SMA. We see further gains only on decisive break above.
- Next major bull target above 200W SMA lies at 0.7886 (61.8% Fib retracement of 0.81250 to 0.75012 fall).
- Strong bullish momentum likely to keep scope for further upside. Momentum studies on weekly charts are also bullish.
- On the downside, 100-DMA at 0.7776 is strong support and we see weakness till 200-DMA at 0.7698 on break below. Violation at 200-DMA invalidates bullish bias.
- Focus now on US ADP jobs and unemployment claims data due for release in the NA session for further impetus.
Support levels - 0.7823 (5-DMA), 0.7817 (cloud base), 0.7776 (100-DMA), 0.7698 (200 DMA)
Resistance levels - 0.7856 (200W SMA), 0.7875 (Oct 4 high), 0.7886 (61.8% Fib retrace of 0.81250 to 0.75012 fall)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-USD-holds-breaks-above-100-DMA-at-07778-weakness-only-on-retrace-below-1076221) has hit all targets.
Recommendation: Watch out for breakout at 200W SMA for further upside.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 113.559 (Bullish), while Hourly USD Spot Index was at -86.6604 (Bearish) at 0110 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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