- AUD/USD spikes higher on a broadly weaker US dollar, breaks major resistance at 0.7925.
- The greenback weakened after Fed’s Chair didn’t mention the economy, neither signals about the path of monetary policy.
- The major has broken stiff resistance at 0.7925, and now finds next major resistance at weekly 200-SMA at 0.7968.
- Breakout above weekly 200-SMA could see further upside. Scope then for test of channel top at 0.8115.
- Technical studies are bullish. We see bullish invalidation on break below 20-DMA at 0.7911.
Support levels - 0.7917 (5-DMA), 0.79, 0.7891 (23.6% Fib retrace of 0.73285 to 0.80656 rally)
Resistance levels - 0.7962 (Aug 17 high), 0.7968 (weekly 200-SMA), 0.80, 0.8042 (Aug 1 high)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-struggles-at-20-DMA-good-to-go-long-on-break-above-860753) is progressing well.
We recommend fresh longs on break above weekly 200-SMA at 0.7968, target 0.80/ 0.8040
Recommendation: Hold for targets.
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