- AUD/USD has shown a decisive break above 200-DMA at 0.7692, bias higher.
- Technical studies are positive, we now see scope for test of 100-DMA at 0.7781.
- Price action has pierced into daily cloud and momentum studies are highly bullish.
- The pair is currently trading in a narrow range amid holiday thinned trading conditions.
- Immediate resistance remains near 0.7740 level (38.2% Fib retracement of 0.81250 to 0.75012 fall).
- 200-DMA at 0.7692 is immediate support and we see bullish invalidation on retrace below.
Support levels - 0.7692 (converged 5 and 200 DMA), 0.7648 (23.6% Fib retracement of 0.81250 to 0.75012 fall), 0.7613 (20-DMA)
Resistance levels - 0.7740 (38.2% Fib), 0.7781 (100-DMA), 0.78
Recommendation: Good to go long on dips around 0.77, SL: 0.7640, TP: 0.7740/ 0.7780/ 0.7810.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 85.6771 (Slightly Bullish), while Hourly USD Spot Index was at -11.6925 (Neutral) at 0430 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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