- AUD/USD upside stalls shy of 0.80 handle. The pair hit fresh 4-month highs at 0.7999.
- Selling pressure seen at highs, price action has reversed upside and is currently hovering around 0.7953 levels.
- We see a potential 'Shooting Star' formation at highs which raises scope for downside in the pair.
- On intraday charts, the major has broken below 1H 50-SMA and is on track to test next major support at 1H 100-SMA at 0.7923 ahead of 1H 200-SMA at 0.7883.
- RSI and Stochs are at overbought levels with possibility for rollover into neutral zone.
- Close above 78.6% Fib retrace of 0.81250 to 0.75012 fall at 0.7991 could extend bullishness. Scope then for test of 0.8053 (88.6% Fib).
Support levels - 0.7937 (5-DMA), 0.7923 (1H 100-SMA), 0.7886 (61.8% Fib retrace of 0.81250 to 0.75012 fall)
Resistance levels - 0.7991 (78.6% Fib retrace of 0.81250 to 0.75012 fall), 0.80, 0.8060 (200M SMA)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-USD-consolidates-break-above-Ichi-cloud-Aussie-weighed-down-by-weak-trade-balance-data-1083014) has hit all targets.
Recommendation: We prefer to wait for clear directional bias.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 9.81496 (Neutral), while Hourly USD Spot Index was at -8.11681 (Neutral) at 0500 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
