- AUD/USD is struggling to break above major trendline resistance at 0.7725.
- Doji formation seen on daily charts in the Asian session. Bearish RSI divergence raises scope for downside in the pair.
- 5-DMA is minor support at 0.7698. Break below finds major support by 20-DMA at 0.7657.
- We see a reversal in trend only on break below 20-DMA, test of 100-DMA at 0.7512 then likely.
- On the flipside, breakout above trendline resistance at 0.7720 could see test of 0.7778 (Nov 8 high).
Support levels - 0.7698 (5-DMA), 0.7657 (20-DMA), 0.7603 (23.6% Fib retrace of 0.7160 to 0.7740 rally)
Resistance levels - 0.7720 (Trendline), 0.7740 (Feb 23 high), 0.7778 (Nov 8 high)
TIME TREND INDEX OB/OS INDEX
1H Neutral Neutral
4H Bullish Neutral
1D Bullish Neutral
1W Bullish Neutral
Recommendation: Watchout for break below 20-DMA to go short.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 57.3761(Slightly bullish), while Hourly USD Spot Index was at -147.394 (Highly bearish) at 0400 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
