- AUD/USD has shown a decisive breakout above major trendline resistance at 0.7710, bias higher.
- Momentum studies are bullish, RSI strong at 70 and biased higher. MACD supports trend higher.
- Next bull target lies at 0.7749 (Mar 21 highs), we see little resistance till 0.7778 (Nov 8 highs).
- A subdued US Dollar action contributing towards further gains.
- Markets await today's release of the US macro data - the key US inflation figures and monthly retail sales data for further impetus.
Support levels - 0.7710 (trendline resistance turned support), 0.77, 0.7679 (5-DMA), 0.7659 (78.6% Fib retrace of 0.7749 to 0.7328 fall)
Resistance levels - 0.7749 (Mar 21 high), 0.7778 (Nov 8 high), 0.78
Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-holds-20-DMA-support-bias-higher-good-to-go-long-on-dips-795926) is approaching final TP.
Recommendation: Book full profits at highs, watch out for break above 0.7750 to enter longs.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 141.522 (Bullish), while Hourly USD Spot Index was at -13.9665 (Neutral) at 0515 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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