- AUD/USD trades above 0.80 handle, is on track to close higher for 6th successive session.
- The major is extending break above 200W SMA and is on track to test 88.6% Fib at 0.8053.
- USD could remain well bid as the Fed's Beige book released earlier this week has opened doors for a March rate hike.
- However, risk aversion in equities could kill Fed rate hike bets and hurt the US dollar. Focus also on US government bill.
- Technically, RSI and Stochs on daily charts are at overbought levels with possibility for rollover into neutral zone.
- Momentum indicators are biased higher and we see scope for test of 88.6% Fib at 0.8053.
- The pair is holding 5-DMA support and we see minor weakness only on close below. Scope then for test of 20-DMA at 0.7860.
- Above 88.6% Fib we could see some bullishness. Scope then for test of 0.81 levels.
Support levels - 0.7980 (5-DMA), 0.7860 (20-DMA), 0.7845 (200W SMA)
Resistance levels - 0.8053 (88.6% Fib retrace of 0.81250 to 0.75012 fall), 0.8103 (Sept 20 high), 0.8125 (Sept 8 high)
Recommendation: Good to go long on dips around 0.80, SL: 0.7960, TP: 0.8050/ 0.81
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 68.5823 (Neutral), while Hourly USD Spot Index was at -79.6273 (Slightly bearish) at 0300 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest.
