FxWirePro: AUD/USD subdued on dismal Australia's housing data, break below 5-DMA could see further drag

• AUD/USD dented after dismal housing data released in Australia earlier in he Asian session.
   
• Australia building permits in May tanked 5.6% m/m, widely missing expectations at -1.3%.
   
• The pair failed to benefit much from solid China Caixin PMI data, intraday bias lower. 
   
• China Caixin Manufacturing PMI came in at 50.4, above forecasts (49.5) in June.
   
• We see further weakness on break below 5-DMA, drag till 20-DMA at 0.7583 then likely.
   
• Doji formation seen on daily charts on Friday and slight bearish divergence on 4H charts adds to bearish bias.
   
• Later in the day, US ISM manufacturing index will be in focus for further impetus.
   

Support levels - 0.7656 (4H 20-SMA), 0.7620 (trendline), 0.76 (1H 200-SMA), 0.7588 (4H 100-SMA)

Resistance levels - 0.7701 (88.6% Fib of 0.7749 to 0.7328 fall), 0.7712 (June 30 high), 0.7749 (March 21 high)

TIME  TREND INDEX  OB/OS INDEX    

1H          Bearish                Neutral       
4H          Bearish                Neutral       
1D          Neutral                Overbought        
1W         Neutral                Neutral      

Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-breaks-major-resistance-at-07620-bias-higher-stay-long-781086) has hit TP1&2. Weakness likely on break below 5-DMA.

Recommendation: Good to go short on break below 0.7650, Sl: 0.77, TP: 0.76/ 0.7585

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