- 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
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest.
