- AUD/USD is attempting a minor recovery from the recent lows seen at 0.7222 overnight.
- US Dollar Index off highs, but still headed toward highest close in 14 years backed by hawkish Fed.
- RBA on hold for now, minutes saw considerable uncertainty with regards momentum in labour market and still saw excess capacity.
- The pair has held 88.6% Fib at 0.7217 and is attempting test of 78.6% Fib at 0.7280.
- We have evidenced a "Potential Bearish Cypher" on AUD/USD daily charts.
- Trend in the pair is lower, but break above 5-DMA at 0.7258 could see some upside.
- Support levels - 0.7222 (Dec 20 low), ), 0.7217 (88.6% Fib), 0.72, 0.7145 (May 24 low)
- Resistance levels -0.7280 (78.6% Fib), 0.7284 (5-DMA), 0.73, 0.7345 (trendline), 0.7386 (61.8% Fib), 0.74
- Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-slips-below-073-handle-good-to-short-rallies-456738) had achieved TP1&2.
Recommendation: Book partial profits. Watchout for close above 5-DMA.
FxWirePro's Hourly AUD Spot Index was at -40.3749 (Neutral), while Hourly USD Spot Index was at 119.498 (Highly bullish) at 0140 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
