FxWirePro: AUD/USD breaks weekly 200-SMA at 0.8008, intraday bias higher

• AUD/USD remains well bid above 0.80 handle despite weak Aussie import price index.
• The Aussie import price index dropped 0.1% quarter-on-quarter vs. 0.7% expected and 1.2% previous.
• The FOMC decision overnight came in line with market expectations.
• However lack of fresh insight on future hike rates combined with a dovish language in the statement knocked-off Treasury yields across the curve.
• USD saw a broad based sell-off overnight and is extending weakness today.
• AUD/USD has spiked above weekly 200-SMA at 0.8008, intraday bias remains higher.
• A close above weekly 200-SMA will see further upside. Test of 0.8163 (May 2015 highs) then likely.

Support levels - 0.8008 (weekly 200-SMA), 0.7965 (5-DMA), 0.79, 0.7842 (23.6% Fib retrace of 0.73712 to 0.79878 rally)

Resistance levels - 0.81, 0.8163 (May 2015 highs). 0.82

Call update: Our previous call (http://www.econotimes.com/FxWirePro-Bearish-RSI-divergence-raises-scope-for-downside-in-AUD-USD-good-to-go-short-on-rallies-818327) has been stopped out after hitting TP1.

Recommendation: Watch out for close above weekly 200-SMA to go long.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 107.212 (Bullish), while Hourly USD Spot Index was at -50.9847 (Neutral) at 0530 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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