- AUD/USD pauses two consecutive sessions of upside, edges lower as steep losses seen in gold and copper prices dented the sentiment around the resource-lined AUD.
- The pair is hovering in a narrow range after breakout above daily cloud on Wednesday's trade.
- AUD/USD has bounced off major trendline support at 0.7585 on Tuesday's trade and has retraced above 50-DMA.
- Technicals have turned slightly bullish after a decisive close above daily cloud, we see further upside.
- However, resurgence in USD demand and weakness surrounding commodities’ prices likely to keep upside capped.
- We find series of resistances (day's highs) upto 0.7680, upside likely to gain momentum on break above.
Support levels - 0.7641 (5-DMA), 0.7630 (50-DMA), 0.7590 (trendline)
Resistance levels - 0.77, 0.7740 (Feb 23 high), 0.7749 (Mar 21 high)
Recommendation: Good to go long on dips around 0.7655, SL: 0.7590, TP: 0.77/ 0.7740
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 141.939 (Bullish), while Hourly USD Spot Index was at -14.4949 (Neutral) at 0415 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
