FxWirePro: AUD/USD upside capped below 5-DMA, break below 20-DMA (0.7898) could see further weakness

• Aussie buoyed on robust Australia July AIG construction index data which rose to 60.5 from 56.0 in the previous month.
   
• AUD/USD was up in the green after 4 successive sessions of downside, trading at 0.7935.
   
• The pair is extending downside after rejection at channel top.
   
• We see strong support at 0.79 levels (nearly converged 20-DMA and 23.6% Fib retrace of 0.7372 to 0.8065 rally).
   
• Break below 0.79 could see drag lower. Scope then for test of 0.78 level (38.2% Fib).
   
• On the upside, major resistance seen at weekly 200-SMA at 0.7992. Resumption of upside only on close above.

Support levels - 0.79 (nearly converged 20-DMA and 23.6% Fib retrace of 0.73728 to 0.80656 rally), 0.7875 (July 21 low), 0.7801 (38.2% Fib)

Resistance levels - 0.7949 (5-DMA), 0.7992 (weekly 200-SMA), 0.80

Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-slips-below-5-DMA-Aussie-ignores-strong-Australia-housing-data-bias-lower-stay-short-833063) has hit TP1.

Recommendation: We see further downside only on break below 20-DMA.

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