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FxWirePro: AUD/USD upside capped below 0.74 handle, intraday bias higher

  • Risk-on persists in full swing, underpinning sentiment around higher-yielding currencies such as the AUD.
     
  • Broad-based US dollar weakness also aids the ongoing recovery in the Aussie.
     
  • Focus today remains RBA Kent’s speech later in the European session ahead of the US economic data due to be reported in the NA session.
     
  • Technically we fell upticks should be used as opportunities to go short. 
     
  • Intraday we see some upside in the pair. A reversal intrend can be seen only on break out above 0.7461 (50% Fib).
     
  • Major support levels - 0.7386 (61.8% Fib), 0.7311 (Nov 21 low), 0.7280 (78.6% Fib)
     
  • Major resistance levels - 0.74, 0.7461 (50% Fib), 0.7486 (10-DMA)
     

Recommendation: We would wait for upticks to go short. 

FxWirePro's Hourly AUD Spot Index was at -16.4071 (Neutral), while Hourly USD Spot Index was at 27.4778 (Neutral) at 0515 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex 
 

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