FxWirePro: AUD/USD extends upside for 4th straight session, breaks above 21-EMA, bias higher

Refer AUD/USD chart on Trading View

• AUD/USD is extending gains for the 4th straight session, intraday bias higher.
   
• The pair is extending gains above 0.73 handle after break above stiff resistance at 1H 200 SMA.
   
• US dollar weakness across the board is supporting upside in the pair.
   
• Price action has bounced off Wedge base with a 'Dragonfly doji' formation in last week's trade. 
   
• We also see bullish divergence on RSI and Stochs which cloud support further upside.
   
• Price has broken above 21-EMA and is on track to test 50-DMA at 0.7387. Break above 50-DMA could see test of 23.6% Fib at 0.7422.
   
• Immediate support lies a 5-DMA at 0.7301, break below will see test of Wedge base at 0.72. Violation at Wedge base to see resumption of weakness.

Support levels - 0.7347 (21-EMA), 0.7301 (5-DMA), 0.72 (Wedge Base), 0.7160 (Dec 2016 low)

Resistance levels - 0.7387 (50-DMA), 0.7422 (23.6% Fib), 0.7445 (Wedge top)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-USD-struggles-at-1H-200-SMA-good-to-go-long-on-break-above-1417882) has achieved target price.

Recommendation: Stay long on dips, target 0.7385/ 0.74/ 0.7420

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 121.827 (Bullish), while Hourly USD Spot Index was at -146.999 (Bearish) at 0545 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.