- GBP/AUD breaks above 20-DMA at 1.6336, intraday bias higher.
- Aussie ignores upbeat Capex number released earlier today. Australia private Capex rose 0.8% in Q2, beating estimates of 0.3%.
- Technical indicators have turned bullish on intraday charts. Stochs are showing a rollover from oversold levels and RSI is biased higher.
- The pair is trading in a downward sloping channel, near-term bias bearish. We see bearish invalidation only on channel breakout.
- On the downside, immediate support is seen at 5-DMA, weakness likely on close below.
Support levels - 1.6336 (20-DMA), 1.63, 1.6279 (5-DMA), 1.62
Resistance levels - 1.64, 1.6485 (Feb 9th high), 1.6513 (23.6% Fib retrace of 1.76509 to 1.61625 fall)
Call update: We had advised a long in our previous call (http://www.econotimes.com/FxWirePro-GBP-AUD-upside-pauses-shy-of-20-DMA-at-16361-break-above-could-see-further-upside-871767) .
Recommendation: Hold for targets.
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 101.398 (Bullish), while Hourly AUD Spot Index was at -36.0679 (Neutral) at 0630 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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