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FxWirePro: AUD/USD breaks major trendline resistance at 0.7655, good to long dips

  • Aussie recovers amid a recovery in the risk sentiment which supported demand for higher-yielding currencies.
     
  • Stronger Chinese industrial profits data also lends support. China’s industrial profits spiked 19.5% y/y in Aug versus +11% last.
     
  • AUD/USD edges higher from session lows at 0.7611, retakes 5-DMA at 0.7636 and is currently hovering around 0.7664 levels.
     
  • The pair has broken major trendline resistance at 0.7655 and we see scope for further upside.
     
  • Technical indicators are biased north on the daily charts, RSI is strong at 58 levels with scope for further upside.
     
  • Price action has edged above daily cloud, stochs are biased north.
     
  • Major support levels - 0.7637 (5-DMA), 0.7631 (cloud top), 0.76, 0.7576 (20-DMA)
     
  • Major resistance levels - 0.7675 (Sept 22 high), 0.77, 0.7760 (Aug 11 high)

Recommendation: Good to go long on dips around 0.7640, SL: 0.76, TP: 0.7675/ 0.77/ 0.7760
 

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