- AUD/USD trades 0.55% higher on the day, breaks above 5-DMA at 0.7392.
- The pair has bounced off strong trendline support on Thursday's trade.
- We evidence a 'Spinning Top' formation at lows which raises scope for upside.
- Further we also find bullish divergence on Stochs which adds to the upside bias.
- Stochs are at oversold and on verge of rollover into neutral territory.
- Close above 5-DMA likely to target 21-EMA at 0.7498. Break above 21-EMA finds next major resistance at 23.6% Fib at 0.7532.
- On the flipside, failure to hold above 5-DMA could see test of trendline support at 0.7345. Violation there could see further weakness.
Support levels - 0.7394 (5-DMA), 0.7345 (trendline)
Resistance levels - 0.7498 (21-EMA), 0.7532 (23.6% Fib)
Recommendation: Watch for close above 5-DMA to go long, target 0.7490/ 0.7530
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 77.1791 (Neutral), while Hourly USD Spot Index was at -74.9742 (Neutral) at 0825 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.